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In speaking with many small companies and advisers to small business (e.g., accountants, brokers, etc.), one of the issues that comes up with respect to utilizing an invoice finance service is the idea of ‘notification.’ This relates to the aspect that a client whose bill is financed by the invoice financing company knows or not that his bill is given over to the finance firm.

There have been troubles when it comes to these things, usually pertaining to the reputation – like, what will come to the customer’s mind about the financial capacity for my enterprise once they realize that their bills are used for cash flow acquisition? However, let’s evaluate the parties here and whether this is really a valid concern.Primarily, it is usually your customer who is laying out the specifications, especially if they are one of the major companies.

Small firms may try to obtain 7 to 14 day payment terms, but huge companies can demand up to 60 days. Secondly, in many instances, the big company will not care that a small business dealer is using invoice factoring – after all, they have already acquired the goods or services, so why would they care where the invoice gets paid to? Thirdly, big businesses are very familiar with their suppliers using invoice factoring as this has become a mature and accepted form of finance in Australia and around the world.

In another point of view, your clients may be more hesitant if you do not employ invoice factoring because they might be skeptical if you are able to continue operating in spite of the long payment specifications. By teaming up with an invoice factoring business, you are giving your client the message that you are able to carry on your good services, with these firms to back you up.And lastly, honesty to your clients is greatly valued in business, especially these days when we are suffering from an economic downturn. Your customer being advised about your business with an invoice factoring firm gives them the idea that there is transparency between two reputable companies who have come into a business arrangement, but the customer has specified the payment conditions.To learn more about invoice factoring, you can get in touch with The Interface Financial Group (IFG) at 1 300 957 900.

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