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Do my customers know of the factor’s involvement?

Choosing whether to disclose that invoices are being sold to a factor is crucial when deciding on the right factoring agreement for your business . If you wish to keep details of the factoring agreement confidential, then invoice discounting may be the best option as your finance department remains in control of all correspondence with customers (they are never contacted by a factor). Some invoice factoring contracts can also be made confidential to prevent customers knowing about the factor’s involvement. However, the factor will still manage customer communication, so you must be satisfied that their procedures and customer service are as professional as you would want. If you do choose to disclose details of the factor’s involvement (in a non-confidential discounting or factoring contract) you may receive a better return on invoices and find that the requirements are less demanding. 

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