Invoice Discounting
Invoice Discounting gives your business a commercial finance service that provides fast access to cash owed on invoices that have been raised by your company. While similar to a Factoring facility, Invoice Discounting differs as it allows a business more control over its debt collection and credit control functions.
How invoice discounting can benefit your business
- Invoice Discounting is competitively priced compared to overdrafts and business loans
- You can receive up to 90% of the invoice value, usually within 24 hours of raising it
- You have more working capital to put back into your business
- The facility grows with your business so there is no need to re-negotiate your overdraft or take on other types of debt
- You can react more quickly to market opportunities
Through our partner, Simply Business, we have access to the UK’s leading factoring providers; you can compare quotes online and there is no charge for setting up your facility.
Costs involved
Fees for invoice discounting services are two-fold:
- Service fees – covers the day to day servicing of your purchase ledger. Normally between 0.5% and 3%of your turnover.
- Interest charge – charged against the amount of each invoice. Usually a fixed percent above the invoice finance company’s base rate.
For a no obligation quotation follow this link, we also offer invoice factoring.
