💡 Summary #
If your buyer (debtor) fails to pay an invoice on time, Factor & Fund takes immediate steps to investigate, communicate, and resolve the issue — without disrupting your business or future funding.
Our approach is transparent, professional, and compliant, ensuring both you and your buyers are treated fairly.
⚙️ What Happens When a Buyer Doesn’t Pay #
1. Payment Monitoring #
All payments from your buyers go directly to Factor & Fund’s controlled account.
If a payment is delayed, our system automatically flags the invoice for follow-up.
We track every payment cycle and maintain regular communication with buyers.
🕒 You’ll receive a notice if payment is late beyond agreed net terms (e.g., Net 30, 45, or 60).
2. Buyer Follow-Up #
Our collections and verification team contacts the buyer’s Accounts Payable department to confirm:
- Whether payment was issued or delayed.
- The reason for the delay (e.g., billing error, dispute, internal processing).
- The expected payment date or resolution timeline.
We always act professionally – no aggressive collection calls or actions that could harm your business relationship.
3. You’re Notified #
You’ll receive an update with one of the following statuses:
| Status | Meaning |
|---|---|
| Pending Payment | Buyer acknowledged delay and provided new payment date. |
| Dispute Reported | Buyer raised an issue with the invoice or work performed. |
| No Response | Buyer unresponsive – further action pending. |
You’ll also get a summary of our communication attempts.
4. Resolution or Escalation #
Depending on the cause:
- Minor delay: Buyer pays, and your reserve releases normally.
- Dispute: We assist in verifying documents or facilitating communication.
- Non-payment beyond 90 days: The account may be reviewed under your Factoring & Security Agreement’s recourse clause.
🟦 Recourse means you may need to replace or repurchase the unpaid invoice if the buyer default is verified.
⚖️ How Factor & Fund Protects You #
- We verify buyers thoroughly before funding to minimize default risk.
- We communicate directly with buyers, not through third parties.
- We avoid litigation unless necessary, focusing on resolution first.
- Your other invoices and fundings continue without interruption unless a pattern of default appears.
✅ Your Role in Resolution #
- Respond promptly if we request documents or buyer communication logs.
- Forward any payments received directly from buyers to Factor & Fund immediately.
- Keep all buyer contracts, POs, and delivery proofs for record verification.
Transparency helps resolve payment issues faster.
🧾 Example Timeline #
| Event | Action | Outcome |
|---|---|---|
| Buyer payment overdue 10 days | Factor & Fund contacts buyer | New payment date provided |
| Buyer payment overdue 30 days | Buyer follow-up + client notified | Reserve held until cleared |
| Buyer payment overdue 60–90 days | Escalation review | Repurchase or legal resolution possible |
❓ FAQ #
Will a late payment stop my future funding?
No. As long as the issue is isolated and you cooperate with the review, your account remains active.
What happens if my buyer goes bankrupt?
We’ll assist with claim filing and recovery where possible. If under a recourse agreement, repayment terms are handled directly with you.
Can I replace a disputed invoice?
Yes. You can substitute a new verified invoice of equal value to maintain your funding balance.
