Notification (Banking & Finance) meaning

In receivables finance (factoring and invoice discounting), notification is the client’s contractual report to the funder that specific receivables have been raised and that any credit notes have been issued. It is typically made by schedule or electronic upload at agreed cut‑off times and is often a condition to purchase or funding, determining availability and triggering eligibility checks, concentration limits and collateral reporting. Facility documentation (for example, a receivables purchase agreement or invoice discounting agreement) commonly treats notification as an offer or deemed assignment of the listed receivables. The client usually warrants the accuracy of data, the absence of disputes or set‑off, proper delivery/performance and tax compliance, and must promptly notify any credit notes, discounts or dilutions. Misstatement, omission or late notification may render receivables ineligible, reduce availability, give rise to recourse and constitute a breach or event of default. This usage is a descriptive, contractual concept rather than one defined by legislation or case law. It is distinct from statutory notice to debtors required to perfect a legal assignment (rules differ across England & Wales, Scotland, Northern Ireland and Ireland). In “confidential” or “non‑notification” facilities, debtors are not told, but client‑to‑funder notification still applies.