Definition
The process of confirming an invoice with the customer before funding.
Why it matters
Fast verification is a key reason established clients get same-day funding.
Where it shows up in a deal
Before funding, the factor contacts your customer's accounts payable team - by email, by phone, or through the buyer's portal - to confirm the invoice was received, the amount is right and nothing is in dispute. For established accounts this can be sampled rather than universal, which is one of the reasons repeat clients fund same day.
What it affects
- An unreachable or wrong AP contact is a more common cause of delay than any credit issue.
- Scope varies: 100% verification on new accounts, sampling on seasoned ones - worth negotiating.
- A customer that will not confirm an invoice makes it ineligible, whatever the paperwork shows.
- Portal-based buyers have their own approval cycles, which can add days you cannot shorten.
The common mistake
Related terms
- Proof of DeliveryDocumentation proving goods or services were delivered.
- Notice of AssignmentA letter telling customers to pay the factor instead of the business.
- DebtorIn factoring, the customer who owes payment on the invoice.
- Estoppel LetterA letter in which a customer confirms the amount owed and agrees to pay the funder.
Questions about how verification affects your facility?
Call (929) 658-8087 or request a written quote — no obligation, no credit impact.
