Non-notification factoring is similar to traditional invoice factoring except the client’s customers are not made aware of the involvement of a third-party factoring company.
With standard invoice factoring, the debtor is made aware of the factoring company’s involvement through a notice of assignment. Going forward, the debtors know to send invoice payments to the factoring company.
With non-notification factoring, the debtor is not notified of the factor’s involvement, thus they continue making invoice payments to the business as usual. Customers are unaware that the factoring company is actually handling these transactions behind the scenes, but in the name of the business, oftentimes using the business’ branding on emails or documents to maintain smooth operations.