What is factoring disclosure?
The credit control function in a factoring facility is outsourced, thus the client has little control over their sales ledger. The factoring company will take responsibility for chasing the debtors regarding the invoice and thus the debtor will know that you are using a factoring financial service. In some cases the company doing the factoring will stamp the invoice sent to the debtor with the details of the factor.
Your customers will not know about you factoring your invoices if you have an undisclosed invoice discounting facility. A number of elements will influence whether the debtor finance facility is disclosed or undisclosed:
- Strength of your business
- Contractual nature of your terms of trading
- Type of industry you are in
- The spread of your customer base
The invoice must also be verified.
A factor can damage your relationships with your customers. When pursuing unpaid invoices they might be much more forceful than you would be. With MarketInvoice that does not happen. Clients are not hassled and confidentiality is assured.
Any company can use MarketInvoice if it:
- Supplies goods/services to other businesses (including the public sector)
- Can provide us with detailed financial information about your company
MarketInvoice offers a selective invoice discounting solution that is better than traditional invoice discounting. It offers a service that is flexible, cheaper and less risky than its competitors.
For more information on suitable companies.