Factoring Companies Guidebook
Private Individuals/General Public
Definition
Page 70 of 105
Any sale to private individuals, not an incorporated or registered legal entity and/or where the goods/services are acquired for personal, domestic or family use.
Concerns
It is not possible to establish the credit worthiness of this type of customer and they can be impossible to trace if they move from the original invoice or delivery address. The debtors are also afforded certain legal protection and rights as consumers, which may affect the Discounter's ability to enforce and collect the debt.
Identification
Review the customer's names on the sales ledger.
Treatment
Monitor levels and quantify through reporting. Sales to Private Individuals should not be funded and be made 'non notifiable'.
