Allowing businesses to gain instant access to cash tied up in unpaid invoices, invoice discounting can help a company to tap into the value of their sales ledger. When a customer or client is invoiced, you can sell these to a lender who will pay a percentage of the total value, providing your business with a cash flow boost.
Sometimes called confidential invoice discounting, invoice discounting is normally not disclosed, and you can continue to deal with your customers as normal. They won’t know you’re using a finance provider. However, this does mean you’ll have to chase invoices yourself, unlike invoice factoring.
Benefits of invoice discounting