Is invoice discounting right for me?
Invoice discounting is a form of invoice financing that involves companies continuing to deal with their clients. It is ideal for those wishing to unlock the money in their invoices quickly before their due date. If you have a good relationship with your client but don’t want them to know you’ve been working with a financier, invoice discounting could be for you. In invoice discounting, you borrow money owed you by a client from a financier until they pay you. If you need to obtain the money quickly to grow your business before the invoice due date, this could prove to be hugely beneficial.
Choose the right option for you
Invoice discounting can be a far preferable alternative to taking out a bank loan or using other methods to obtain cash quickly. Invoice factoring involves the financier buying your invoice from you and obtaining the money from your client themselves. You will usually have to pay a fraction more for this service but it can save you the stress of chasing up the money yourself, leaving you free to focus on other duties.
Get the cash you need quickly
Whether you opt for discounting or factoring, you could obtain the money you need to put back into your business within just 24 hours. Any reputable financier will talk you through your options in order to lead you to an informed decision. A growing number of companies are getting hold of the cash they need quickly by enlisting the support of invoice finance companies. The primary difference between factoring and discounting is who takes responsibility for getting the payment from your clients.