Confidential Factoring, also referred to as Non-Notification Factoring, is a type of factoring in which no information is sent to Buyer that the owner of the Invoices is no longer its Supplier but the Financier.
Confidential Factoring usually occurs in the following situations:
Buyer does not accept to pay Factoring Financiers. Although the Buyer does not agree to pay Factoring Lenders, it may be included in a Factoring Transaction in case of medium or low risk.
Both Supplier and Buyers are at such a low risk that the Financier, to reduce the cost of the Transaction, refrain from performing the collection service and therefore Buyer Notification may be redundant.
- The Supplier does not want Buyers to know it is using Factoring to fund their treasury. Normally, because of this reason alone, it is unlikely that any Financier will perform Confidential Factoring, however, together with other reasons, this may be the main reason for this type of Factoring to occur.
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Your client is also a client of the Factoring operator. That said, if any action hurts the business relationship between your company and the buyer, the Factoring also loses out on business. To get good service there's nothing better than choosing a company that specializes in management of Factoring.
Today, there are more and more companies specializing in the management of Factoring credits with digital processes. This gives your company the advantages outlined above, so you don't need to train or assign more work for your staff. As a result, you can stay focused on increasing your business sales.
Know what other Types of factoring exist.
Other Types of Invoice Financing
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