Invoice Discounting

Controlling your cashflow

The lender will lend you money secured on your invoices, but unlike Invoice Factoring the credit collection is still handled by the company.

Because the company retails the credit collection process it is more discreet than Invoice Factoring.

Typically the lender management fees are lower, as more of the work is done by the company. However it does mean you will need to have an effective credit control function yourself and supply timely and accurate details to the lender.

Lenders are keen on Invoice Factoring and Invoice Discounting as their lending is directly secured and so is seen as a better risk than a general overdraft facility. Their risk is matched to the spread of debtors, and so is often assessed as a lower risk for the lender, particularly for young or growing companies or companies that have had an inconsistent profit record.