💡 Summary #
The reliability of your buyers (debtors) determines how quickly and safely your invoices can be funded.
That’s why Factor & Fund performs a detailed verification process to confirm that your customers are legitimate, creditworthy, and have a consistent payment history.
⚙️ Why Buyer Verification Matters #
Invoice factoring depends on who pays your invoices — your customer, not you.
Before funding, we confirm that your buyer:
- Is an active, registered business in good standing.
- Has a proven record of paying vendors.
- Accepts the Notification of Assignment (NOA) and agrees to remit payments to Factor & Fund.
🟦 This process protects both your company and Factor & Fund from fraud, payment disputes, and defaults.
🧩 Step-by-Step Buyer Verification Process #
1. Legal & Entity Verification #
We confirm the buyer’s legal existence using:
- Secretary of State records (state of incorporation).
- Federal EIN and business registration.
- Address, phone, and email match against official listings.
2. Contract & Invoice Validation #
We cross-check:
- Purchase orders, contracts, or service agreements.
- Proof of delivery, signed timesheets, or acceptance documents.
- Matching entity names on invoices, contracts, and NOA.
✅ Only completed, undisputed invoices are approved for funding.
3. Payment History & Reputation #
Our system reviews:
- Buyer payment history (if prior invoices exist).
- Public reviews and credit references (Google, BBB, Glassdoor).
- Records of lawsuits, liens, or bankruptcies (state and federal).
If no history exists, we may request three paid invoice references from your past dealings.
4. NOA Confirmation #
Before releasing funds, we send a Notification of Assignment (NOA) to the buyer.
The buyer must acknowledge the NOA in writing — confirming they’ll send payment directly to Factor & Fund’s account.
This acknowledgment is required by law and ensures:
- Payment transparency
- Proper tracking
- No confusion between vendor and funder
5. Ongoing Monitoring #
Even after approval, we continue monitoring buyer health through:
- Payment consistency tracking
- Credit monitoring tools and UCC checks
- Alerts for late payments or returned funds
This helps prevent issues before they affect your funding.
🧾 Example of Buyer Verification Outcome #
| Verification Step | Result |
|---|---|
| Legal business search | Active, Inc / LLC |
| Payment history | 3 successful prior payments |
| Contract validation | PO #1224 verified |
| NOA acknowledgment | Received from buyer’s AP dept. |
| Final risk rating | Low Risk — approved for full advance |
✅ Benefits for You #
- Faster approvals and smoother transactions
- Reduced funding risk
- Greater trust between you, your buyer, and Factor & Fund
- Eligibility for higher advance rates
❓ FAQ #
Do you contact my buyers directly?
Yes, but only for professional verification — never for sales or collections.
Will my buyers know I’m using factoring?
Yes. They’ll receive the NOA and payment instructions, but it’s handled professionally and transparently.
Do you fund invoices before the buyer is verified?
No. Buyer verification must be complete before funding begins to ensure secure transactions.
