Your invoice discounting options
When it comes to getting the most benefit from invoice discounting, there are a few different options to suit your situation:
Confidential Invoice Discounting
Confidential invoice discounting allows your business to access 90% of the value of invoices within 24 hours, but ensures your customers won’t be aware that you have this funding mechanism in place.
This is a great way for your business to boost cash flow without interfering with your customer relationships, allowing you to continue managing them however you choose.
Disclosed Invoice Discounting
Disclosed invoice discounting works in much the same way as a confidential facility, however the funder’s involvement is disclosed to clients.
While invoices will refer to the fact they have been assigned to an invoice finance provider, customers pay the invoice finance provider directly.
Non-Recourse Invoice Discounting
Non-recourse invoice discounting facilities additionally incorporate bad debt protection to safeguard your cash flow.
The benefit is that your business is protected from non or late payment through both debtor insolvency or protracted default. It also avoids the need to have credit insurance as a separate facility, as the invoice discounting company will manage the policy.
Cross Border Invoice Discounting
For businesses which supply customers overseas, cash flow can quickly become tied up due to goods often being in transit for long periods.
Cross border invoice discounting facilities give businesses the opportunity to release cash against the value of these invoices within just 24 hours of their issue, helping to ease the cash flow burden on the business and provide the means to continue investing in growth.
Like with other invoice discounting facilities, up to 90% of the invoice value is typically released, with the remainder made available once the customer pays.
The benefits of cross border invoice discounting include working with specialist lenders who understand language and cultural differences, receiving cash in your preferred currency and a reduction in time and money spent accessing international payments thanks to overseas bank accounts.
