---
title: Factoring Invoices - Why is Customer Notification Important?
description: Why is it important for invoice factoring companies to notify my customers?  Learn more about online factoring for small business. 888.833.2286
image: https://www.fastarfunding.com/hs-fs/file-16057647-jpg/images/changes.jpg
---

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## [Factoring Invoices - Why is Customer Notification Important?](https://www.fastarfunding.com/blog-factoring/bid/83122/Factoring-Invoices-Why-is-Customer-Notification-Important)

Posted by [matthew begley](https://www.fastarfunding.com/blog-factoring/author/matthew-begley) on Tue, May 15, 2012

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**[Factoring Invoices](https://www.fastarfunding.com/factoring-loans/)** - Why is Customer Notification Important?

I had a long conversation with one of our prospective clients yesterday about our need to notify her customers that we would be factoring invoices for her. It was important to her that her customers not know that she was factoring, as she believed that her customers would think her business was in financial distress if she needed to [factor invoices](https://www.fastarfunding.com/blog-factoring/bid/89578/Unraveling-Myths-About-The-Factoring-Loan).  

This is not an usual conversation for me, especially if it is a prospective company in an industry where factoring is not widely used or accepted. My first response to our clients when this subject comes up is to let them know that the vast majority of businesses really aren't adverse to factoring, if it is explained correctly.  What is important for the customers of our factored clients to understand is that the only change they need to make in their "business process" is to have all the payments that they used to make directly to their vendor made directly to our firm (as we are now [factoring ](https://www.fastarfunding.com/blog-factoring/bid/88842/What-Is-Factoring-And-How-Does-It-Help-Your-Business)their invoices). That is it. 

Many prospective clients anticipate a big push-back from their customers regarding the need to bring a factoring company into the loop, when in reality, these customers really don't care. All most customers are concerned about is that their vendor continues to deliver a good or service that meets their expectations. In todays economic environment why would a company be surprised that one of their vendors needed outside financing?

It is important for legal reasons that a factoring company notify its client's customers. In case of a legal dispute regarding a factored invoice, the factoring company may be required to prove that they gave notice to the customer that they had purchased the receivable and where now the rightful holder of the payment obligations related to the invoice.  

To learn more about our online, paperless  [invoice factoring](https://www.fastarfunding.com/invoice-factoring/) process for small business click the link below or give us a call. 888.833.2286. 

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