Do you need to release funds from unpaid invoices? Invoice Discounting allows you to maintain control over the collection of payments.
With invoice discounting, the business sells unpaid invoices to an invoice discounting company. Invoice discounting and invoice factoring both help companies expand and grow by ensuring you have the cash flow to run your business.
Invoice discounting has become a major source of working capital due to the restrictions of bank financing.
Similar to invoice factoring, the risk is minimal for the lender because the invoice due from the debtor is the collateral for funds. You’re owed money so the invoice discounting provider gives you most of it before the customer pays you.
Invoice discounting is sometimes referred to as confidential invoice discounting. Unlike invoice factoring, the customer doesn’t know you’re using an invoice discounting provider. The task of collecting payment lies with the business as against invoice factoring where the invoice discounting company recovers debts on your behalf.
If you need a quick cash injection to help with growth plans, invoice discounting could be the option that allows you to focus on developing your business.
Invoice discounting bridges the gap between raising customer invoices and getting paid. You’re better equipped to fund growth and manage your day-to-day activities with a fast cash loan.Invoice discounting is a good option if:
If you don’t conduct credit control management in-house, invoice discounting may not be the right option for your business. You’re more likely to get invoice discounting if your business is established, rather than a start-up.