What is invoice discounting?
Invoice discounting is an ideal funding solution for profitable businesses that supply goods or services to business customers on standard trade credit terms. It is a form of invoice finance that is a line of credit secured by outstanding accounts receivable. With a typical invoice discounting solution, the sales, accounting and collection activities continue to be carried out by the client.
What are the benefits of invoice discounting and invoice finance?
- Up to 80% of the value of invoices raised (less fees) is made available within 24 hours, with the remaining 20% paid once payment is received from your customer.
- No requirement for real estate security.
- Like all invoice finance facilities, limits grow in line with business revenues, so there is no requirement for regular re-negotiation during period of expansion.
Who does invoice discounting and invoice finance suit?
Invoice discounting is a form of invoice finance that is generally suited to SMEs that already have an in-house accounts receivables team. Businesses which qualify for invoice discounting will have a dedicated internal accounts department and a demonstrated ability to perform the full range of collections activities including calls, reminder letters and issuing monthly statements.
Is invoice discounting confidential or will my customers be notified?
Invoice discounting facilities are typically confidential, but can be disclosed by agreement.
For more information about how invoice discounting or invoice finance can help your business, fill out a quick enquiry form or call us on one of the following numbers: