Updated 2026-05-19

Verification call

A phone call or contact used to confirm an invoice is valid before the factor funds it.

Why it matters

Verification calls are part of the factor fraud prevention and invoice eligibility process. The factor contacts the account debtor directly to confirm that the invoice is valid, the goods or services were received, and no disputes exist. If the account debtor is unresponsive, disputes the invoice, or confirms only partial delivery, the invoice may be held pending resolution. Sellers can reduce verification delays by maintaining clear customer contact information and alerting customers that a factoring company may call to confirm invoice details.

How it appears in contracts

Verification call requirements appear in the Verification or Eligible Receivables section of the factoring agreement. The agreement typically gives the factor the right to contact account debtors directly at any time. Some agreements require the seller to facilitate verification calls by providing current contact information for each customer and notifying customers in advance. If a customer refuses verification or consistently fails to respond, the factor may treat invoices from that debtor as high-risk or ineligible, reducing available funding from that customer relationship.

Related terms

• Recourse
• Chargeback
• Notice of assignment
• UCC-1