What is Invoice Discounting?
- Posted: 3rd July, 2025
- Updated: 3rd July, 2025
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Invoice discounting is a financing method that allows businesses to borrow against their outstanding invoices. This helps improve cash flow while waiting for customers to pay.
Key features include:
- Quick access to funds: Businesses can receive up to 90% of the invoice value immediately.
- Retain control: Unlike factoring, businesses maintain control over their sales ledger.
- Flexible repayment terms: Payments are made once the customer pays the invoice.
This financial tool is ideal for businesses looking to enhance liquidity without sacrificing customer relationships.
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