Factoring Companies Guidebook
Invoice Delivery Address
Definition
The address to which the goods or services, which are subject of the debt, are either invoiced or delivered, which may be one in the same.
Concerns
Where we are not comfortable with the invoice address, the debts should not be funded. Certainly where no address is quoted on the invoice, no funds should be advanced by us until the address has been confirmed and verified.
We should be wary of any invoices where delivery to a regular customer is suddenly to a different address and no notification has been received of any change of address. This could be an indicator of fictitious invoicing, although it is not uncommon for some customers to have multiple addresses.
The invoice address may indicate invoicing to associated companies or staff sales, neither of which should be funded. Questions should be asked of the Client where invoicing is to a 'Suite' name, which may be a temporary accommodation address, or to another company or body within the same building as the Client. In the latter case there may be collusion if the debt does not exist, or the invoice may not actually leave the Client's office, so the other party may be unaware of its existence. Here the Client may subsequently raise a credit note to clear the invoice prior to any credit control work being undertaken. Addresses which may appear to be more of a residential than a business nature may be indicative of sales to individuals or the general public.
Identification
Review any invoices, which do not have an address for the reasons why and confirm the address with the Client.
Obtain a regular up to date list of all customer names, addresses and telephone numbers from the Client.
Verify addresses through:-
- Dunn & Bradstreet Searches
- Companies House Searches
- Telephone Listings
- Internet Searches
Treatment
Where there is any doubt as to the existence of validity of any address which appears on assigned invoices, these should not be funded until the address and the Discounters ability to recover the debt has been verified.
Under no circumstances should funds be advanced against any invoice where no address is stated, if found at audit, a reserve should be inserted.
