Home → Funding options → Invoice discounting
— FUNDING OPTION
Invoice discounting: funding while
you manage customer payments
Access funding against eligible unpaid invoices while your team keeps control of the sales ledger and collections. Invoice discounting can suit businesses with established credit control and reliable financial reporting.
Your team stays in charge of collections
You manage customer payments and reporting under the agreed facility terms. Confidential arrangements may be available.
What it is
Funding against eligible unpaid invoices, with your business retaining day-to-day credit control.
Who collects payment
Your team follows up invoices and manages collections, using the payment arrangements agreed with the provider.
How funding flows
An agreed percentage of an eligible invoice can be released once the provider has approved it.
— HOW IT WORKS FOR YOU
From raising an invoice
to accessing funding
Your business continues to manage the sales ledger. The provider uses invoice and ledger information to assess funding availability under the agreed terms.
01 You raise the invoice as normal
Supply your goods or services, raise invoices and provide the ledger information required by the finance provider.
02 You manage the ledger and collections
Your team follows up customer payments, resolves queries and keeps the provider informed through agreed reporting.
03 Funding follows the invoice
Draw the agreed advance against eligible invoices. Customer payments are reconciled under the facility arrangements, with the remaining balance available after charges.
Who it may suit
- You invoice other businesses on agreed payment terms
- You have an established credit control process
- Your team keeps accurate, up-to-date ledger records
- You want to continue managing customer collections
- Your business can meet the provider’s reporting requirements
When it may not fit
• You need a provider to take over chasing invoices
• Your sales ledger or financial reporting is difficult to keep up to date
• Most sales are paid immediately rather than on credit terms
• Your sales ledger or financial reporting is difficult to keep up to date
• Most sales are paid immediately rather than on credit terms
— WHAT YOU GET
Practical benefits of invoice discounting
Keep your credit control in-house
Your team continues to manage collections and resolve payment queries directly with customers.
Funding against eligible invoices
Access some of the value in invoices you have already raised, subject to the agreed advance and eligibility.
Maintain customer relationships
Keep day-to-day conversations about invoices and payment terms with the people who know your customers.
Support for regular outgoings
Available funding can help bridge the gap between paying suppliers or wages and receiving customer payments.
Confidential options may be available
Some providers offer confidential arrangements. Availability and any customer verification requirements depend on the facility.
Room to take on more work
Funding availability may increase with eligible invoicing, within the facility’s agreed limits.
— COSTS
What a facility of this kind usually costs
Costs vary between providers and businesses. Ask for an illustration showing all charges and the contractual commitments.
- A service charge for operating the facility, often linked to turnover
- A discount or finance charge on funding used
- Possible charges for additional services, such as credit protection
- Minimum fees, arrangement fees and any early-exit charges
We explain charges before you commit, so you can compare facilities fairly.
Funding is subject to eligibility, assessment and provider terms. Fees apply. Nothing is agreed until you have reviewed the terms.
— THE PROCESS
A clear path from enquiry to funding
STEP 01
Tell us about your business
Tell us who you invoice and how customers pay. There is nothing to prepare for the first conversation.
STEP 02
Compare your options
Understand the available options, their costs and how collections would work for your business.
STEP 03
Review the terms
The provider assesses your business. Review all charges and conditions before deciding to proceed.
STEP 04
Access your funding
Once approved and set up, draw funding against eligible invoices under your agreed facility terms.
— YOUR QUESTIONS, ANSWERED
Invoice discounting FAQs
Confidential facilities may be available, but this is not automatic. Ask the provider how invoice verification, customer contact and payment arrangements will work.
Your business normally retains responsibility for credit control, including chasing overdue invoices and resolving disputes.
Requirements vary. Providers may ask for regular sales-ledger updates, reconciliations, accounts and information about overdue or disputed invoices.
Unpaid or overdue invoices may reduce funding availability or require repayment of an advance. Any credit protection and your obligations depend on the agreement.
With discounting, your team usually manages collections. Factoring normally includes the provider’s credit control service. Compare the costs, reporting and customer-contact arrangements.
Let’s talk about your invoices
Tell us about your invoices and credit control. We’ll help you explore whether discounting could fit.
- Plain-English explanations
- Options shaped around your business
- No obligation to proceed
— WHERE IT IS USED
Invoice discounting for your sector
Each sector gets paid differently. Explore the cash-flow pressures in yours.
Bridge the gap between paying your staff and receiving client payments.
Manage materials and production costs while customers work through their payment terms.
Support day-to-day operating costs while waiting for business customers to pay.
NEXT STEP
Let’s find a practical way
forward for your cash flow.
Tell us about your business and the invoices you raise. We will explain the options that may be available, in plain English and without obligation.