What Is A Non-Notification Factoring Deal?

Today we're discussing non-notification factoring deals. Well, what exactly is it?

Well, let me explain, first of all, what the normal process is for a factoring company. You have an accounts receivable, you would like to be able to get cash on that accounts receivable now and not have to wait 30 or 60 days for your client to pay. So, you approach a factoring company and you ask for some of that cash right now, today.

Okay, now what happens? Well, generally speaking, a factoring company will provide you the cash upfront for that invoice and then they will notify your client. And they will tell your client to make sure that they pay the factoring company.

Well, this works sometimes. And, in fact, this is really the normal process that most factoring companies use. However, a non-notification factoring deal is just like it sounds. You as a client can still convert your invoice to cash, but you don't have to tell your client. Sometimes, this works out very, very well.

We just closed a transaction last month where a legal staffing firm wanted to make sure that their large law firms did not have notification from us. We were able to get that transaction closed. There was a specific purpose for it and it worked. Our client is absolutely thrilled that we've been able to provide the cash, convert the invoices everyday to cash, and not have to tell the law firms to pay us directly.

We hope that this has been informational for you. We're here at any time to discuss any of your questions. We pride ourselves in being informational and being able to really help people understand what factoring is all about.

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