What is Invoice Discounting?
A confidential invoice finance agreement where a business borrows money against its unpaid sales invoices while retaining control of its own credit control and customer debt collection.
The Details
Invoice discounting allows businesses to unlock the value of their B2B invoices immediately—usually up to 90% of the invoice value within 24 hours of raising it. Crucially, unlike Invoice Factoring, the facility remains confidential. The customers are unaware of the lender's involvement, and the borrowing business continues to chase its own late payments and manage its own ledger. Once the customer pays the invoice into a trust account, the lender releases the remaining 10%, minus their agreed fee.
Commercial Relevance
Ideal for established B2B businesses (like wholesalers, manufacturers, and logistics firms) with robust internal credit control who experience cash flow bottlenecks due to standard 30, 60, or 90-day payment terms.