Benefits of using an invoice discounting arrangement

Invoice discounting is popular method of invoice finance in the UK where businesses with large and trustworthy collection departments can gain access to cash by sending over a batch of invoices to a invoice finance provider in return for an allocated facility to draw an agreed percentage of money against raised invoices.So, what are the benefits of using an invoice discounting arrangement?

Invoice discounting provides a business with Improved cash flow
Invoice discounting can release a business up to 85% of the value of invoices
An invoice discounting facility is continuous so can provide a business with an ongoing supply of cashflow
As sales grow an invoice discounting facility can grow in proportion.
A business using invoice discounting has the confidence of Knowing exactly when it is going to be paid
By receiving cash as soon as a sales invoice is raised, a business using invoice discounting will find that its cash flow and working capital position is improved.
A business using invoice discounting only pays interest on the funds that it borrows, in a similar way to an overdraft, which makes it more flexible than debt factoring.
Invoice financing can be arranged confidentially, so that customers and suppliers are unaware that the business is borrowing against sales invoices before payment is received.

Please note that invoice discounting is a very trusting method of raising business finance. It is not open to all business and always subject to an detailed audit prior to approval. Call 0800 597 4757 or apply online.