Invoice Discounting

Retain your own credit control and full management of the relationship with your customer whilst benefitting from positive cash flow.

What is Invoice Discounting?

Invoice Discounting is a simple and effective way of quickly accessing a proportion of the value of your invoices (up to 90%), usually within 24-hours of them being issued, so you can access cash at the point you sell products and services rather than waiting between 30-90 days for your customers to pay.

How does it work?

Your business sells unpaid invoices to a lender in return for a proportion of their value (up to 90%).

You sign an agreement with a lender which will detail the proportion of the total invoice value you will be paid immediately (usually called the initial percentage or prepayment percentage)., what balance will be paid to you when your customer pays the invoice in full, and how much you will pay the lender for providing the facility Your relationship with the customer remains unchanged, as you are responsible for collecting payments and managing credit control.

What are the benefits?

  • Speeding up the payment process – You receive a percentage of the total value of new invoices as soon as they are issued, so you don’t have to wait for the customer to pay you
  • Controlling the customer relationship – you collect payments as normal, and therefore run your own credit control, and retain full management of the relationship with your customer
  • Security – lenders can protect you against customer insolvency with Bad Debt Protection
  • Confidential – Invoice discounting is provided confidentially meaning customers will not know you are using an invoice discounting facility

How can we help you?

The Finance Exchange is an industry leading ABL advisory business, where our expertise is purely focused on aligning your specific business and finance requirements with the right lenders and then helping you to achieve the right terms and facility structures for your business.  Given our ‘analytical’ and ‘attention to detail’ approach, we are used to working with management teams and   ‘taking the strain.’ with prospective lenders, whilst allowing you to focus on your business.

If you would like our support or have any questions, why not contact us? We are here to help!