Invoice Discounting Process

The Invoice Discounting Process

In the UK invoice discounting comes under the umbrella of invoice finance. Invoice discounting is a financial product available to businesses in the UK that sell goods and services on credit. It is used to improve a company’s working capital and cash flow position

Invoice discounting is an alternative method to factoring of drawing money against a business’s invoices

  • The invoice discounter will first check the business by carrying out a mini audit if the firms customers and accounts systems.
  • After the audit has been passed the invoice discounting company set up a facility which provides a draw down facility to gain access to percentage of the total sale each month.
  • Every month or week the invoice discounter is notified of the details of the invoices in raised
  • The invoice discounter requests weekly or monthly electronic bulk downloads sales books or invoice information
  • On receipt of a sale and invoice information the invoice discounter will make funds available at the agreed percentage rate
  • The business can then draw down on funds made available.
  • As cash is received from debtors it is paid to the invoice discounter.
  • The process is continuous, generating cash availability to the client
What does invoice discounting cost?
Features of invoice discounting
Benefits of Invoice Discounting
Drawbacks of Invoice Discounting

Please call 0800 597 4757 for advice on invoice discounting. Our team cab source an invoice discounting arrangement for your business because we understand which invoice discounters are best matched with certain businesses. As an invoice discounting customer you will be assigned one of our client managers and guided through the whole invoice finance process.