What are the concerns with Direct Delivery?
- The Supplier is aware of the ultimate Customer and may attempt
- to obtain payment direct in the event of default by the Client: their terms of
- sale may even contain the right to do so.
- Additionally, the Factor may have to rely on the goodwill of the
- Supplier to obtain Proof of Delivery, and there is always the possibility that
- the Supplier is involved in PRE-INVOICING or CONSTRUCTIVE DELIVERY.
- The client may also be acting as AGENT, not PRINCIPAL.