Non-Notification Factoring – NEW

Neebo Capital now offers non-notification factoring, below  in this article we describe Non-Notification Factoring:

not notification factoring

Non-notification factoring, can help your company retain clients and grow cashflow.

 

The majority of factoring occurs with the full knowledge of the customer.

If you’ve obtained a mortgage from your local bank, chances are that at some point you’ve also received a letter from them saying that your mortgage was now being handled by one of the bigger banks.

Non-notification factoring occurs when the invoices are sold to a factoring company without the knowledge of the customer.

This service can benefit companies in three ways.

1. It preserves trust

 

Personal service has become incredibly important in our impersonal world. And the big banks, in particular, have earned the well-deserved reputation that they don’t care about anything except paying huge salaries who head their institutions. They certainly aren’t interested in the ordinary people whose mortgages or other accounts they hold.

 

That attitude has disenfranchised their customers. Smart business people do the opposite. They do all that they can to maintain the faith that their clients have in them.

 

And that being the case, if customers of smaller lending institutions were aware that their business had been passed to a different company, one which was out of their reach, then they might be tempted to take their custom elsewhere.

 

So, by keeping the changes in the ownership of the loans confidential, firms can prevent that from happening. In order for that trust to be maintained, however, it’s essential, that customers are still able to get the help and support they need from their local lending company.

 

 

2. It preserves the brand.

 

Think of laundry soap, for example. Consumers like choice. If all of detergents had labels that identified them as being from the same company, there would only be a few to choose from. But, by branding each of them separately, customers can pick the one they prefer.

 

The same idea holds true when firms sell their invoices to a third-party without the knowledge of the customer. Factoring companies typically buy accounts from many different businesses.

 

But, if customers became aware that in actual fact their invoices were in the hands of only a few companies, then they would feel that their ability to choose had been eroded. In effect, they would be unable to see the difference between dealing with one company or another.

 

 

3. It preserves loyalty.

 

Customers prefer to use their local bank branch because they want to support firms in their communities, and also because they like to make friends with those with whom they do business.

 

If they ever thought that the majority of their financial obligations were now under the roof of some other business that is out of their town, or out of their state, then they could be made to feel that the branch had betrayed them.

 

And that means they would be more likely to move their accounts to another business that they felt would be loyal to them.

 

 

Although banks and other business need to earn a profit in order to remain viable, they also need to recognize the importance of serving the customers they have.

 

If they breach that trust and limit their choice, then they will also lose their loyalty.

 

Non-notification factoring, if handled correctly, can help your company to achieve all three.

 

Published by

Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

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