There’s an old saying that goes “Call me with the bad news, write me about the good news.” The meaning of this is pretty clear. If you are factoring your invoices and something goes wrong, we want to hear about it right away. The situation might be screwed up, but not telling us doesn’t improve the outcome.
There are plenty of reasons a payment can get held up; it might be misplaced at the payables department, last minute dispute over the amount etc. These things happen, and clients who pick up the phone and let us know right away are going to get the benefit of the doubt. If the factoring company has to figure out there’s a problem on their own, it will cast a level of distrust over the entire relationship.
With invoice factoring being a regular ongoing financing vehicle, there are workout avenues for making a misstep whole again. Repayments out of reserve and special advance procedures will fix a problem without much trouble A client who is proactively on top of their transactions is probably running a company that will succeed due to better overall management.