---
title: Receivable Financing - The Secrets Part 3
description: Some Secrets of Receivable Financing.  Part 3 of the series - Contacting Your Customers.  How to sell it.
image: https://www.fastarfunding.com/hs-fs/file-16070681-jpg/images/wq-money-woman.jpg
---

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## [Receivable Financing - The Secrets Part 3](https://www.fastarfunding.com/blog-factoring/bid/64972/Receivable-Financing-The-Secrets-Part-3)

Posted by [matthew begley](https://www.fastarfunding.com/blog-factoring/author/matthew-begley) on Fri, Aug 26, 2011

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![receivable financing, financing receivables, financing invoices, invoice financing](https://www.fastarfunding.com/hs-fs/file-16070681-jpg/images/wq-money-woman.jpg)Some the secrets of receivable financing, Part 3.  

[Click this link that will take you to our blog home page to other parts of this series.](https://www.fastarfunding.com/blog-factoring/)

In todays article we will discuss the importance of having your customers pay your factor directly.

[Most receivable financing companies](https://www.fastarfunding.com/invoice-factoring-invoice-discounting-factoring/) require that your customers pay the receivable financing company directly.

The reason it is required is that the receivable financing company needs to be as close as possible to the process in order to keep accurate track of the collateral they are financing.

There are many industries where receivable financing is a well known form of finance.  If you operate in an industry where receivable financing isnt well known you may be worried about how your customers will react to receiving invoices from a third party finance company and having to pay a receivable financing company directly.

The following is a few things you can do to make the transition as easy as possible.

- Be up front with your customers.  Let them know you are exploring different types of finance, and that you may decide to finance their accounts.  Make sure to let them know ahead of time, so when they do receive an invoice from the receivable finance company they aren't surprised.
- Explain why you are considering financing your accounts.  You may be growing and need additional working capital to support your company.  In today's economy people understand and shouldn't be surprised if you need additional financing to support your business.  You can explain that the fact that you qualify for this type of financing should be viewed as a positive by your customers. Not all companies qualify.
- Send them a letter.  Take the time to draft a professional letter that explains the new financing relationship in detail and include a little information about the firm you are financing with.  The more information people have the more comfortable they tend to be.  Just the fact that you took the time to write them a letter can add validity to the situation.

We are all trying to make our way in this tuff economy, and I wouldnt expect things to change any time soon. Because of this, we need to question the way we have done business in the past, including how we think our customers will react to different forms of financing.  Just because something was true five years ago doesn't mean it is true today.

To learn more about our paperless, online receivable financing product for small business click the button below.

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