03Solutions
Invoice discounting
With invoice discounting, the business draws funding against eligible invoices but continues to manage its own sales ledger and collections. Depending on the provider and structure, the facility may operate confidentially.
At a glance
- Business usually retains credit control and the customer relationship.
- May be confidential, subject to the provider and the facility structure.
- Often considered by established businesses with a reliable ledger process.
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What changes day to day
Under invoice discounting, the business raises invoices, chases them and receives payment as it always has. Funding is drawn against the ledger in the background, and receipts are typically paid into an account arrangement agreed with the provider.
Because the business keeps the ledger, providers generally want to see that it can run it well. Reporting requirements are usually more involved than under a factoring facility.
02
Confidentiality
Many discounting facilities are offered on a confidential basis, meaning customers are not made aware of the arrangement. Whether a confidential facility is available depends on the provider’s assessment of the business and the ledger. It should be treated as something to explore rather than something to assume.
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What we help with
We help businesses understand whether their ledger and controls are likely to support a discounting facility, which providers are realistic, and how confidential and disclosed structures compare in cost and conditions.
Typically suits
- Established businesses with a credit control process already in place
- Businesses that prefer customers to see no change
- Ledgers with consistent invoicing and a good payment history
Worth considering
- Providers commonly look for stronger financial controls and reporting
- Confidentiality is not guaranteed and depends on the facility offered
- The business remains responsible for collecting from its customers
Providers apply their own eligibility criteria and set their own terms. The points above describe how facilities of this kind commonly operate and are not a guarantee of what any provider will offer.
Other structures
04Next
Start with a conversation.
No application form, no obligation. Tell us about the business and the requirement, and we will tell you honestly whether invoice finance is worth exploring.
What happens when you get in touch
- 01A short conversation about the business, its customers and how it invoices.
- 02We work out whether invoice finance is a realistic fit, and which structure.
- 03If it is, we outline the options and the providers worth approaching. If it is not, we say so.