Probably the most often asked question regarding receivables factoring is – what will my customers think? To be clear, this is a perception issue. If the factoring relationship is above board, it will be handled in an industry wide accepted manner with proper legal notification of the assignment of proceeds and verification of accepted invoices. This accepted manner is in place to protect all parties equally during an agreed upon transaction.
The critical issue is the perception. Trying to be sneaky about financing invoices is the wrong attitude. In fact, your company should be excited that an outside source of capital is willing to back your future success. By telegraphing this development in your growth it is unlikely a customer will have any issues with your decision to get the strategic capital alliance you need which will allow your company unhampered progress.
For the most part, very large corporations are very much aware of situations like lockbox payments and verifications coming through their accounts payables department. Giving advance notice of the relationship is all it takes to make invoice factoring run smoothly without disrupting customer relations.