Invoice Discounting
Secure your financial future
- Turn Unpaid Invoices into Cash - Up to 95%!
- Sell One Invoice or Many - The Choice is Yours!
- Get Funded in 24 Hours - Breathe Easy Today!
What is invoice discounting?
Invoice Discounting lets you sell your outstanding invoices while maintaining control over your credit management. Unlike factoring, your customers remain unaware of your use of invoice financing, ensuring confidentiality.
Invoice Discounting, a discreet form of invoice finance, is a popular choice for businesses of all sizes. If you need quick access to cash without compromising your credit control, this solution could be ideal.
Receive up to 95% of the value of your sales invoices
Invoice discounting can unlock significantly more funding than traditional bank loans or overdrafts. The available funds are directly tied to the value of your invoices.
No asset security required
No additional asset security is required, a significant advantage over other business loan products.
Retain control of sales ledger
Invoice discounting empowers you to manage your sales ledger, allowing you to directly handle customer invoicing and payment collection.
It's 100% confidential
The process is entirely confidential, so your customers remain unaware of the invoice financing. Business operations stay the same.
Client relationships not affected
You continue to manage the client account as usual, while invoice discounting handles the cash flow behind the scenes.
Bolt-on extras
Additional business services, like bad debt protection and payroll support, can save you time and mitigate risk.
- Instant Decision, No Commitment
How does invoice discounting work?
Invoice discounting offers your business quick access to funds, ensuring you keep control of your sales ledger and customer interactions. You'll receive payment in two distinct payments.
1
Continue to invoice your clients in the standard manner.
Sell your products or services to business customers as usual and issue invoices with a 30 to 90-day payment term.
2
Select invoices for sale
Once your facility is established, you can opt for either “whole-turnover” discounting, which involves selling a significant portion or all of your outstanding invoices, or selective invoice discounting, which allows you to sell individual invoices on an as-needed basis. In both cases, the invoice financier purchases the debt owed by your customers, providing you with immediate cash flow.
If you need immediate cash flow for a specific invoice or a small group of invoices, selective invoice discounting is the ideal solution. This option allows you to sell individual invoices on an ad hoc basis, providing flexibility and control over your cash flow.
3
Receive up to 95% upfront
Receive an invoice advance up to 95% of the value of your sales invoices in 24 hours.
4
You receive invoice payments.
Continue collecting payments from customers as usual. When invoices are due, clients pay directly to the invoice finance provider's account. This process is entirely confidential. If you are looking to free up your time from chasing late payments, then an Invoice Factoring facility can help.
5
Receive final balance
You’ll receive the remaining balance after deducting any agreed-upon fees and charges.
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Am I eligible for invoice discounting?
Most businesses trading directly with other companies on standard credit terms in the UK or Ireland, with an annual turnover exceeding £100,000, are eligible for invoice discounting.
Invoice discounting is a versatile financial solution for many UK SMEs, including those in recruitment, engineering, and manufacturing.
We can help businesses if they meet the following criteria:
You are either a limited company, an LLP, or a sole trader
Your annual turnover is £100,000 or higher.
Your business is located in the UK or Ireland.
You sell to other businesses on payment terms
What is the cost of invoice discounting?
The cost of the facility typically involves two main fees, a service fee and a discount fee. These fees can vary significantly from business to business, but your industry sector, trading history and how frequently you invoice can all have an impact. The cost will be made clear to you before you sign into an agreement.
The cost is made up of two fees. You will pay a...
Service Fee
This fee, calculated as a percentage of your gross turnover, covers the cost of using the facility.
Discount Fee
This is the borrowing cost, calculated as a percentage of the invoice value.
Get your free, tailored, no-obligation quote today
Invoice discounting: A smart way to improve your business cash flow
Don’t let cash flow problems hinder your growth. Confidential invoice discounting provides a swift solution to optimize your business’s financial health.
Invoice discounting offers quick access to funds, with money deposited directly into your business bank account. It can also provide significantly more funding than traditional bank loans, with the amount received based on your invoice value.
A confidential invoice discounting facility that keeps you in control
Unlock your cash flow potential with SME Invoice Finance. Our rapid funding solutions can release up to 95% of your invoice value, improving your cash flow and streamlining your business operations. It’s quick, easy, and completely confidential.
Invoice Finance Frequently Asked Questions
What is confidential invoice discounting?
Confidential invoice discounting offers your business a discreet way to access funds against outstanding invoices. You maintain full control of your credit management, ensuring your customers remain unaware of your financing arrangement.
What is recourse and non-recourse invoice discounting?
- Recourse and non-recourse invoice discounting determine who bears the risk if a customer defaults on payment.
- Recourse discounting means you are responsible.
- Non-recourse discounting means the lender is responsible.
What is the difference between invoice discounting and factoring?
While both discounting and factoring provide funding for unpaid invoices, they differ in who manages your credit control. With discounting, you retain control of your sales ledger, whereas factoring companies handle this for you.
Can I select a single invoice?
Yes, single invoice discounting is ideal for selling a single invoice. It offers flexibility, allowing you to choose specific customer invoices without long-term commitments, unlike full ledger discounting.
Why is discounting confidential?
Invoice discounting is confidential, as you retain control over credit management. Your customers remain unaware of your financing arrangement.