The process of funding using invoice factoring relies entirely on the verification process for establishing that the invoice is real. If it is a reoccurring billing situation this entails contacting the accounts payable department of your customer to verify; the amount of the invoice, the work has been completed and accepted, and that the remit to address properly shows the factors’ payment lockbox address. Normally this is done over the phone, or a fax, or by email.
If you only have one customer, or the billing model is somehow abnormal these are situations where a more formal “sign off†is required by the customer in writing, acknowledging that the proceeds of your invoice have been pledged to a third party (the factoring company). Here the factor will need the customer to sign a document stating that this invoice is proper and will be paid in full without any credits deducted, nor contesting of the payment.
So be prepared for having your customers verify invoices by letting them know directly that you have secured outside funding to grow your company. This is an everyday normal course of business and is frequently used to fund accounts receivable.