Business Loan Broker > Invoice Finance > Invoice Discounting

Invoice Discounting

Fincred CF is a broker for disclosed invoice discounting and confidential invoice discounting. We will help you find funding based on your unpaid invoices. These solutions can improve your cash flow and allow your business to grow at the rate it deserves. 

Contact Fincred CF today to find the invoice discounting or confidential invoice discounting solution your business needs.

What is Invoice Discounting?

Invoice discounting is a form of invoice finance, where finance is provided against invoice issued to your customers when you are trading on credit terms.. This means you don’t have to wait for your customer to pay the outstanding invoice on the agreed credit terms (which could be 90 days or more). Instead, the funding provider will forward a percentage of the invoice value almost immediately. 

This gives you immediate access to cash tied up in outstanding invoices. The amount of cash you receive is based on an agreed percentage, usually up to 90% of the invoice value but this can be higher. 

Invoice discounting differs from invoice factoring in one main area. Your company remains in control of your entire credit control, and your customers will not be aware of the confidential invoice discounting agreement. This form of invoice finance is often preferred by businesses that have been operating for a longer period of time and have an established credit control department.

Is Invoice Discounting the Same as Invoice Financing or Factoring?

Invoice discounting, which can be a confidential or a disclosed facility, is a type of invoice finance. The finance provider will usually purchase your invoices and pay an agreed percentage of the invoice value upfront, drastically improving your cash flow. The main difference with invoice discounting is that you will be fully responsible for all of your credit control. Invoice discounting can be provided on a disclosed or confidential basis.

Is Invoice Discounting Suitable for My Business?

 

Invoice discounting is often favoured over factoring by businesses that have been trading for a longer time and have a well-defined and established credit control department. With an invoice discounting facility, your business is responsible for credit control, including issuing invoices, chasing outstanding debts and ledger management.

What is the Difference Between Confidential Invoice Discounting and Disclosed Invoice Discounting?

The main difference between these two types of invoice discounting is whether your customers are aware of the invoice finance facility.

Confidential Invoice Discounting

When you use confidential invoice discounting, your customers are not notified that you have an invoice finance facility. Your customers will continue to pay invoices to your company and you remain in full control of the credit control. 

Disclosed Invoice Discounting

When you use disclosed invoice discounting, your customers are notified that you have an invoice finance facility. Your customers will often pay invoices directly to your finance provider but your company remains in full control of the credit control.

Am I Eligible for Invoice Discounting?

We can provide invoice discounting quotes for businesses in almost any situation. There are some eligibility criteria that must be met. For example, your business must be a UK limited, limited liability partnership (LLP) or public limited company. 

If your company has adverse information affecting your credit score, you may still be eligible for invoice discounting. We can help you find a solution for businesses with a clean credit score or businesses that have struggled to find finance due to an adverse credit score.

How Much Does Invoice Discounting Cost?

There are two main types of charges involved in an invoice discounting facility:

  • The Discount Fee
  • The Management Fee. 

The discount fee is the charge levied on funds used under the invoice discounting agreement. The discount fee can start as low as 1.5% and is only charged on funds that you draw down from the available amount. 

The management fee is charged for the administration aspect of the facility. It is often charged as a percentage of your turnover, starting from 0.2% or less. However it can be agreed as a fixed monthly fee.

Work with FinCred CF, an Invoice Discounting Broker

 

Fincred CF is an independent broker. Finding the best deals for our customers is at the heart of our mission. That makes us the best choice for any business looking to find a great invoice discounting deal.

Though commercial finance can be complex, you don’t have to go it alone. We are financial experts ready to help you. We will become your partner in finance that your business can rely on. 

Ready to release capital trapped in your invoices? Contact Fincred CF today for a free invoice factoring quote.

UK Wide Industry Statistics

Total value off all sales financed in the UK - £bn

Domestic invoice discounting - £bn

Total number of asset based lending clients

Domestic invoice discounting clients

Please Get In Touch

If you wish to speak to a receivables finance broker please fill out the form on the ‘Contact Us’ page by clicking the button below.