What type of business can benefit from invoice discounting?

What type of business can benefit from invoice discounting?

Invoice discounting is a form of business finance where a business obtains an advance on approved submitted invoices. With invoice discounting, an advance on invoices is paid by the invoice discounter in a similar way to an advance paid by a factoring company.

A fundamental difference, however, is that with invoice discounting, the company retains control over the administration of its sales ledger and book debt collection.

Invoice Discounting is ideal for businesses that want to retain control of their own collections and who already have strong credit control systems in place.

Invoice Discounting services benefit business with a large turnover of at least £300,000 per year

  • A new business or start up can benefit from invoice discounting if it has a good credit collection department and a large projected turnover.
  • An invoice discounting services can benefit any business that sells on credit as long as there are likely disputes with its customers
  • Business with a large spread of customers can benefit from invoice discounting.
  • A business looking extra working capital to cover the costs of increasing demand can benefit from invoice discounting.

Please note that our advice team has access to a full panel of invoice discounting firms, meaning that we are able to source invoice discounting deals from the invoice discounting market. Please call us on 0800 597 4757 or apply online.