Non-notification factoring

Factoring where customers are not told about the assignment, though legal and contract limits apply.

Why it matters

Without a notice of assignment, the seller must manage payment routing, increasing the risk of misdirected payments and adding operational complexity.

Related terms

Related article: What is invoice factoring?

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.