A statement informing the debtor that they now owe payment to the factoring company instead of the trucking company The name and contact information of the debtor The due date or dates of the invoice or invoices The amount of the invoice or invoices that have been assigned The invoice number or numbers that have been assigned to the factoring company The name and contact information of the trucking company The name and contact information of the factoring company The notice of assignment usually includes the following information: In order to protect their investment, the factoring company will send a notice of assignment to the debtor, informing them that they now owe payment to the factoring company, not the trucking company. The factoring company then becomes the receivable’s owner and has the right to collect payment from the debtor. When a trucking company factors their receivables, they are selling their invoices to a factoring company at a discount in order to receive immediate cash. What is Covered in a Notice of Assignment?

This is because the debtor will now be dealing with the factoring company instead of the business that assigned the receivables. The notice of assignment also helps introduce the factoring company to the debtor. Without a notice of assignment, the factor would not have any legal recourse against the debtor. The notice of assignment also allows the factor to perfect its security interest in the receivables, and provides notice to the debtor that the receivables have been assigned and that payments should be made to the factor.Īnother reason why a notice of assignment is important is that it allows the factor to take action against the debtor in the event of a default on the receivables. The notice of assignment also assigns the right to receive any future payments on the invoice to the factoring company.Ī notice of assignment in trucking is important because it protects the factor’s (or the organization to which the receivables have been assigned) interest in the receivables. In order for the factoring company to have the legal right to collect payment from your customer, you will need to sign a notice of assignment.Ī notice of assignment in trucking is a document that assigns the right to collect payment on an invoice to the factoring company.

The factoring company then collects the payment from your customer on your behalf. When you factor your invoices, you are essentially selling them to the factoring company. What is a Notice of Assignment in Trucking?

Trucking invoice sample