COMMERCIAL INVOICE DISCOUNTING
Invoice discounting: funding with
in-house credit control
Access funding against eligible unpaid invoices while your team keeps control of customer relationships and collections.
Facility specifications
Advance rate
Agreed with the provider
Credit control
Retained by your team
Customer visibility
Confidential options available
Turnover requirement
Provider dependent
Financial reporting
Reliable records required
KEEP CONTROL OF COLLECTIONS
Maintain direct customer relationships while supporting cash flow
Invoice discounting provides finance against eligible unpaid invoices. Your business continues to maintain the sales ledger, issue statements and collect customer payments, with funding supporting your working capital.
Estimate your available funding and annual costs with our Try our invoice finance calculator.
The provider advances an agreed proportion of invoice value. Customer payments follow the facility’s agreed arrangements, and the remaining balance becomes available after advances and charges are accounted for.
DIRECT COMPARISON
Invoice discounting vs invoice factoring
| Feature | Invoice discounting | Invoice factoring |
|---|---|---|
| Customer awareness | Confidential options available | Usually disclosed to customers |
| Credit control & collections | Managed by your team | Managed by the provider |
| Business suitability | Reliable reporting and in-house collections | Funding plus support with collections |
| Fees | Compare all charges and internal costs | Includes a collections service; compare full costs |
| Advance rate | Agreed with the provider | Agreed with the provider |
| Bad-debt protection | May be available, subject to terms | May be available, subject to terms |
Commercial privacy
Confidential facilities may be available. The provider’s terms determine what customers need to know about the arrangement.
Direct customer relationships
Your team continues to manage customer conversations, payment reminders and disputes.
Control over your collections
Keep your established credit-control processes while using eligible invoices to support working capital.
DISCOUNTING ENQUIRIES
Frequently asked questions
about discounting
Confidentiality, eligibility, reporting and costs explained.
Confidential facilities may be available, but confidentiality is not automatic. Confirm customer communications, payment arrangements and any circumstances in which disclosure could be required.
Providers assess trading history, financial position, customer quality and your sales ledger. You will normally need reliable reporting and the resources to manage collections. Minimum turnover and security requirements vary.
Ask the provider which systems it supports and how invoices, receipts and ledger reports are shared. Integration and reconciliation requirements depend on the facility and your software.
The service fee may differ because your team manages collections. Compare the full proposal, including discount charges, minimum fees, additional charges and exit costs, alongside your internal administration costs.
READY WHEN YOU ARE
Explore invoice discounting for your business
Tell us a little about your business and what you need from invoice finance. We’ll help you explore the next step.