An important element that factoring companies rely largely on is the verification process for establishing that the invoice is real. If it’s a reoccurring billing project this entails contacting the accounts payable department of your customer to verify; the work has been completed and accepted, the amount of the invoice, and the remit to address properly shows the factors’ payment lockbox address. Normally this can be accomplished over the phone, or a fax, or by email.
Be aware, there are situations where a more formal “sign off” is required by the customer. For instance, if you only have one customer, also known as concentration, or if the billing model is somehow complex – then the factor will need the customer to sign an estopple letter stating that this invoice is proper and will be paid in full without any credits deducted, nor contesting of the payment.
So be prepared to the possibility of having your customer verify in writing that the proceeds of an invoice have been pledged to a third party (the factoring company). This is a normal course of business and is frequently used to finance invoices.