Notice of assignment

A written notice telling a customer to send payment to the factor instead of the original seller.

Why it matters

Customers who do not receive or acknowledge the notice may send payment to the wrong party, creating collection disputes and reserve delays.

Related terms

Related article: UCC filing in factoring

Related reading

Sources

  • Uniform Commercial Code Article 9 - Uniform Law Commission. Accessed 2026-05-19. Reference for secured transactions concepts including receivables and filings.
  • 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.