Notification Factoring

Another way of classifying Factoring has to do with the relationship of the Funder to the Buyer.

In Notification Factoring the Buyer will be informed that the Invoices of a particular Supplier must be paid to the Funder/Financier.

Notification occurs mostly by letter sent by mail (Notification Letter) and depend on certain factors. Such as, Financier, Country, Type of Factoring and Transaction characteristics. This type of Notification can be simple or With Confirmation. For Simple Notification, Buyers will only receive the Notification Letter and automatically be directed to pay the invoices directly to the Funder.

On the other hand, in Notification With Confirmation, Buyer must sign and return the Notification to the Financier. In this type of Notification the Financier can be sure that the Purchaser knows to whom to pay the Invoices on their due date.

Buyer is notified that it must pay to the Funder. Accordingly, it is with the Funder that the Purchaser will report to during the invoice collection process.

factoring notificado

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Factoring is too complex

At first glance, getting a cash loan may seem simpler. But in truth, understanding how Factoring works is very simple. In addition, the advantages you get make purchasing this service worthwhile.

Increase of Potential Financing

Because the funding you receive is linked to the invoices you have issued, the more you sell the more funding you will receive. Most banks set a funding ceiling for your Company. However, by choosing Factoring, if you increase your sales you will also receive more funding.

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