Notification letter
A letter sent to the customer directing them to pay the factor.
Why it matters
An accurate notification letter ensures customers direct payment correctly. Errors in payment instructions can cause misdirected remittances.
Related terms
Related article: What is invoice factoring?
Related reading
Sources
- International Factoring Association - International Factoring Association. Accessed 2026-05-19.
- Secured Finance Network - Secured Finance Network. Accessed 2026-05-19.
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.