Factoring Services

Factoring services: Invoice Discounting

What happens when you use invoice discounting?

It's a type of factoring which allows you to receive finance against outstanding sales invoices.

Some UK invoice discounting brokers can arrange for you to receive up to 90% of your invoice value within 24 hours of the invoices being raised.

Customer rapport maintained

You still control your sales ledger. So you communicate with, and send statements to, your customers, helping maintain your business relationships.

Your customers typically don't know that you are using invoice discounting services.

What do I need to quality for invoice discounting?

To access invoice discounting, your business typically has to have:

  • a good track record and
  • an annual turnover of £500,000 plus.

If you meet both criteria you can approach 'discounters'. A discounter will check your business credit and profit history before they agree to give invoice discounting services.

Discounters often review and feedback on your sales ledger processing as part of their discounting service.

See more information on invoice discounting.