Disclosed Invoice Discounting Explained
Disclosed invoice discounting provides businesses with the funding to maintain a healthy cash flow when trading on credit terms. The facility releases up to 90% of an invoice’s value within 24 hours of it being raised, avoiding the cash flow challenges associated with trading on credit terms.
Where it differs from a traditional invoice discounting facility, which is provided on a confidential basis, is that the funder’s involvement is disclosed to clients.
Armed with an improved access to working capital, businesses using disclosed invoice discounting can therefore meet their day-to-day commitments and crucially pay suppliers on time, being well positioned to potentially negotiate and benefit from early settlement discounts.