Invoice Discounting - B2B Finance that grows with sales.

Invoice Discounting 

The ideal finance facility for a larger or well-established business in growth mode that sells B2B.  

The Benefits of Invoice Discounting 

Invoice discounting is a form of short-term financing that allows businesses to access cash from their unpaid invoices - subject to financier guidelines & procedures up to 90% of value is paid within 24 hours.  The balance less a fee and interest are charged from the client's payment.

Flexibility facilities can be tailored to suit the business needs. Businesses can choose which invoices to discount, how much cash to access, and when to use the service. 

Improved cash flow and working capital.

Invoice discounting can help businesses overcome cash flow gaps and meet their operational expenses without waiting for their customers to pay. 

Reduced debt and interest costs

Invoice discounting does not add debt or interest to the balance sheet, as it is not a loan, but a sale of invoices at a discount. This can improve the financial ratios and credit rating of the business.  

Maintained control over collections.

Invoice discounting allows businesses to retain control over their customer relationships and collections process, unlike invoice factoring which usually requires businesses to assign their invoices or collection rights to a third party. 

No bricks & mortar security required.

Security is a loan agreement between the business and the financier, supported by a charge over the assets of the business and fiduciary guarantees from the Directors/ owners.   

Confidentiality In most cases the customers will be unaware of the facility and the invoicing as credit management remains with the client.

Other Advantages

The working capital provided by invoice discounting improves a business’ cash position by enabling it to:

• Take on more business and finance the additional production and sales and in turn make more profit.
• Pay suppliers promptly and take advantage of discounts for prompt payment and bulk purchasing.
• Finance additional stock.
• Discontinue prompt settlement discounts to customers.
• Offer extended terms of credit to your customers.
• Finance promotional activities to generate increased sales.
• Pay outstanding taxes.

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