Invoice Discounting

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Attain actual value of your sales ledger with invoice discounting

Invoice discounting is an all-time saviour for businesses as it fulfils the constant need for funds based on the sales ledger. Whether a business needs working capital or instant funds to start a new project, discounting is a dependable source. Another good factor is that many finance companies provide this financial product on quick decisions. If you think it will be a long process, you are wrong. Before you imagine, you can get the deposit in your account.

Finding the right finance company discounting on invoices can be a challenge. TheBusinessFunds can help you spot the best companies and compare their rates and policies. Once convinced, you can borrow funds immediately. Let us find some good options and give speed to your business growth.

What is invoice discounting?

This type of invoice finance allows you to borrow money through funds released after you raise invoices. These invoices are unpaid, but you can obtain funds based on them. This is what makes it a discount on the invoice. Once the customer makes the payment, you pay that money to the finance company. The fund provider takes a small amount as a fee against this service.

In simpler words, discounting is a way to borrow money using your sales ledger. Still, the finance company does not give you 100% of the total value of invoices. It is between 70% and 95%, which depends on your business conditions and the fund provider’s policies.

Salient Features-

  • It is much more flexible than an overdraft and a loan in terms of procedures and formalities
  • It never takes control of your business as the lender. It is because you only take the cash of the unpaid invoices.
  • Confidential procedure as there is no need to involve customers who are supposed to make the payment.
  • Small business invoice discounting is also available, which offers considerable help at the last minute.
  • Get instant access to cash whenever you need it. There is no restriction on the use of funds.
  • A completely online procedure allows the fund provider to check invoices online to deposit funds instantly.
  • No collateral required to borrow money through this unsecured loan. Only invoices are being used.

The features you read here are available in all invoice discounting companies. The need is to find the one that suits your requirements best. Hiring a business loan broker like us can offer you ease. Let us know your expectations and we will find an exactly suitable finance company.

How does invoice discounting work?

The procedure is quite straightforward, which is one among the invoice discounting advantages. Go through below to understand how things work.

  • Sell the products or services as usual and raise invoices to your customers.
  • The finance company will integrate its software with your invoicing system. This will automatically upload the credit notes and invoices.
  • You will get 75% to 95% advance (whatever is decided) of invoices on the same day in an hour or two.
  • Then you will collect the payment from the customers. The amount is forwarded to the company.
  • After receiving the funds, the business loan company will give you the rest of the percentage after deducting a specific fee.

You can say that discounting invoices is one of the most borrower-friendly financial products. Once you experience the procedure, you will never ask how does invoice discounting work. It will deposit money in the account before you complete documentation in any other loan product.

What are the invoice discounting advantages?

Something that gets you funds so fast will undoubtedly have many benefits. Invoice discounting in the UK is popular due to its immediate as well as long-term benefits. You cannot afford to overlook its benefits. Let us look below and know how it can benefit your business.

  • Speedy working capital source - Working capital requirement is the most flicker thing to happen every now and then. However, thanks to the invoice discounting facility businesses can obtain funds whenever they want.
  • No involvement of customers - Unlike other invoice funding options, here, you do not even need to inform your clients that you are obtaining funds. This gives you the liberty to manage your customer payments on your own.
  • Interest-only on the borrowed amount - You need to pay interest only on the money you borrowed. Isn’t it pleasingly flexible? Of course, having and taking off every well whenever you are low on money fuel is great.
  • Adaptable to business growth - Along with business growth and scaling, invoice discounting finance can change. You can always depend on discounting invoices no matter how scalable your business has become.

How much does invoice discounting cost?

According to the current scenario, the cost of discounting the invoice is very low. It takes only 0.2% to 0.5% of the total turnover fee. This is lower than the invoice factoring. You can easily apply and avail of funds. The finance company is not responsible for collecting payments from your customers like other invoice products. Thus, the borrowing procedure is neither expensive nor slow. However, it is essential to mention that your business should have stable finances.

This type of invoice finance is the cheapest and the fastest way to obtain funds. This is why several business owners consider it more important than small business loans. You should know that the discounting fee is charged weekly or monthly. The purpose of the fee is to release the cash. For longer repayment terms, you may need to pay a higher fee. On the other hand, for a shorter repayment term, a lower fee is fine.

In any case, discounting is cheaper than invoice factoring. After all, the lender has fewer responsibilities to manage. It is always best to hire a finance broker and let it help you choose from a choice of lenders. The brokers know the nerve of the market and they will not let you get lost in the oceanic quantity of the options.

Invoice Discounting vs Invoice Factoring- Know before you choose

Understanding a financial product is a wise method to make the right choice. Let us understand the difference between Invoice discounting vs factoring. After all, comparison is always a great way to develop an insight into your financial choices.

Invoice discounting Invoice factoring
It does not involve customers. All processes happen between the lender and the borrower business. It involves the customers, who know that a factoring company is obtaining repayments.
Faster way to obtain funds because the finance company has nothing to do with the collection of invoices. It is a fast way too but not faster than the discounting. The finance company needs to check the invoice history.
It is a very cheap option for business owners. Only a small fee is deducted in exchange for the service. Affordable but not as cheap as discounting. The reason is that the finance company takes care of the payment collection from customers in invoice factoring.
It’s a perfect choice for B2B businesses but also available for B2C businesses. More useful for B2C customers.

Why the Business Funds to discover and compare deals?

We can present you with some specific and special reasons to trust us. At the same time, we believe in interactions or conversations. You can choose well when talking to our experts about the discounts on the invoice system. They assist numerous businesses daily. Let us not waste time. Read below to learn why you should choose us.

  • Unbiased suggestions - Providing unbiased suggestions or assistance should be the first factor, like a broker. TheBusinessFunds is dedicated to this principle. We will always suggest the finance companies best for your business goals.
  • No location restriction - Our broker services offer online assistance. Thus, we have no issues with your business location. We can reach you across the UK. Our tools and services are AI-based, and we embrace the advanced ways of FinTech. After all, this is why the human world is innovative.
  • Access to the best finance companies - We will get you the best and most renowned finance companies. When hiring invoice discounting finance brokers like us, you will know that you are choosing the right option.
  • Let us bargain for you - We will bargain for you if you have specific expectations on interest rates and repayments. However, we never act irrationally; taking care of our customers' benefit is essential. Convincing the lenders of your concerns is our job.

TheBusinessFunds has been working in this sector for a very long time. We hope that once you connect with us, our experience and expertise will help you. Get in touch with us, and let us know more about you. To find suitable finance companies, we need to understand the present and future of your business. Why wait for more? Connect and call now, as our experts are ready to assist you.


How fast can I get cash through discounting on invoices?

You can get money in an hour or two. It is a speedy financial product designed to serve the instant needs of funds. You should never worry about any delay. When you release the invoice, the discounting finance companies deposit the money in your bank account. It is already a speedy funding source, and you should never worry about the speed of funding. Nothing can stop you from obtaining funds as long as your invoice system works correctly.

Why should I hire a business finance broker?

Knowing about all the options is always good whether you are looking for invoice factoring or discounting. You may end up taking an expensive deal despite great and cheap deals being available. A broker knows the nook and cranny of the finance market. It will always get you the best and can suggest financial products newly introduced to the market. Once you are registered with a broker, just visit our contact page and call us. We will have all your details.

How can I find you?

You can easily find us online with whatever you are searching for. For example - if you need invoice discounting companies, search for it, and you will find us in the options. You can directly look for Thebusinessfunds online. Our services are available online without any constraint of location. Thus, reaching out to us online is the most convenient way to reach out to us. We are business loan brokers and favour anything that ensures your comfort. Online chat assistance, calls, and online queries are the best ways to get our services while sitting on your couch.

Can I avail of invoice discounting despite my poor credit score?

Yes, you can, but conditional apply. Your current business turnover, business future, and recent debt handling improvement are all important. The business owners use it in a recurring manner to obtain instant funds. Thus, to have a sense of security, first know a few things about your business. At the same time, we will not say that getting funding with a poor credit score is rocket science.

Who is involved in invoice discounting?

It involves only the finance company and the borrower, which means the business borrowing funds. Unlike other invoice finance options, it does not include the customers. This one factor makes it an easy financial product. You can keep your funding confidential because the finance company will not collect payments on your behalf. Raise funds as many times as you can.