Invoice Discounting

Confidential funding against your sales ledger

Invoice discounting works similarly to factoring in that it releases cash tied up in unpaid invoices, but there is one key difference: it is confidential. Your customers are not made aware of the arrangement and you continue to manage your own credit control and collections.

This makes it particularly well-suited to businesses with established credit control processes, a strong debtor book, and customers who value a direct relationship.

Facilities typically advance 80–90% of eligible invoice value. You draw down funds as needed and repay as your customers settle their invoices.

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Completely confidential

Your customers have no visibility of the arrangement. Payments are made to a bank account in your company name.

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You retain credit control

You continue to manage your own collections. The lender provides funding against your ledger without managing the process.

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Draw down as you need

A revolving facility. Draw down against submitted invoices when required and repay as customers settle.

Comparison

Factoring vs discounting: which is right for you?

	Factoring	Discounting
Confidential	✕ No	✓ Yes
Credit control managed by lender	✓ Yes	✕ No
Advance rate	80–90%	80–90%
Typical cost	Higher	Lower
Best suited to	Businesses wanting outsourced collections	Businesses with strong internal credit control

Common questions

Discounting FAQs

No. Invoice discounting is a fully confidential arrangement. Your customers receive invoices from you and make payments to a bank account in your company name. There is no indication that a third-party provider is involved.

Yes. Lenders offering discounting facilities expect you to manage your own collections effectively. They will review your credit control procedures and debtor book performance as part of the assessment process.

Selective invoice discounting allows you to raise funding against specific invoices rather than your entire ledger. It offers greater flexibility and can be useful if you have a concentrated debtor base or only require funding against particular customer accounts.