An Invoice Discounting facility enables businesses to reduce their order-to-cash cycle by freeing up cash from the value of issued invoices. The lender will provide a line of credit based on the value of those invoices and then collect the money for you, meaning you can get paid sooner. For example, instead of waiting 30 days for an invoice to be paid, you might only have to wait ten days for your cash.
Invoice Discounting is a flexible alternative to traditional business loans—and it’s confidential too!
Cash in hand faster
You are not alone in your quest to make the most of your business. There is a growing number of companies that want to be successful, and they all need cash sooner than later. This is why you should consider invoice discounting as an option for getting some funds on hand more quickly.
A flexible source of funding
Invoice discounting is a flexible source of funding, as you can borrow money to pay off your invoices, suppliers, employees and tax. This means that you have more control over the timing of when you pay your debts.
Confidential invoice discounting
Invoice discounting is a confidential service. This means you don’t have to share your personal details with the Invoice Debtor Finance provider.
Which means? You can keep your financial details private and confidential!
You also don’t need a credit check, so if you’re not yet established as a business owner, there’s no problem here either.
How does invoice discounting work?
In case you are wondering how invoice discounting works, invoice finance is a form of short-term finance that allows businesses to access the value of their unpaid invoices.
In simple terms, if you have a customer who owes you $500 and they pay their debt in full within 30 days (or less), then the lender will advance the funds at a discounted rate with interest attached to it. This can be done through a broker or directly with your customer’s bank account via electronic transfer (ACH).
This also means that if your business has an outstanding receivable or invoice balance due from its customers, then it’s possible for them to give the notice to cancel their contract with you if they are unhappy with any aspect of your service delivery.
Invoice discounting is a great way to get money quickly, and it can also be used as a long-term source of income when you have cash flow problems. It is not only secure but can also give you the peace of mind that comes with knowing your company will always have enough money to cover expenses.
This type of financing has many benefits and works well for businesses that want to maintain control over their finances while still getting the most out of their sales invoices.