Similar to invoice factoring, invoice discounting again involves a business having an agreement to sell their unpaid invoices to an invoice finance company.
However, the business retains the credit control function and continues to be responsible for dealing with customers and chasing payment, which is
then paid directly into the invoice finance company’s client account (rather than to the business).
It is possible to operate a confidential invoice discounting facility with most lenders in this market, meaning that customers need not be aware that you
are utilising a finance company to support the ongoing trading of the business.
Invoice finance is a flexible cash flow option and can be adapted and changed to suit the business’ individual needs; as the business grows and generates
increased sales, the facility will be able to grow with the business. This makes it a more viable alternative to other traditional forms of finance
like overdrafts and loans.