What is Non-Notification or Blind Notification?
Non-Notification or Blind Notification is a type of factoring agreement that reduces direct communication between a factoring company and the factoring company’s client’s customer. The fact that the company is using a factoring company is typically not known to their customers. Under a standard factoring agreement, the factoring company deals directly with their client’s customer under the verification and A/R management process.
However, only the largest most creditworthy companies qualify for non-notification factoring and many of them do it only for the Credit Protection and A/R Management (they don’t even take the Factoring Advance). For example, many Fortune 1000 companies will sometimes use a non or blind notification to offload A/R from their Balance Sheet.