Invoice Discounting

Factoring comes in many forms and invoice discounting has it's roots in factoring.   A similar process is followed where payment is made upto the value of the invoice raised at a time to suit you and your business.  Where invoice discounting differs from the standard forms of factoring is the way your customer is dealt with and consequently your customer is unaware that invoice discounting is occuring. 

Factoring or Invoice discounting : the difference.

Typiically when you use a factoring company you must provide this information on your invoice.  Requesting your customer pay the factoring company directly and all credit chasing is provided for you by the factoring company you are using. 

With invoice discounting there is no need to advise the customer that a third-party company is involved.  You remain responsible for ledger management, collecting all payments directly from your customer.  All you supply to the invoice discounting provider is a schedule of invoices in a time period which works for you.  The invoice discounting supplier will then honour his agreement and you must honour yours by collecting payment from your customer in the normal manner and forwarding those funds to the invoice discounter. 

Invoice discounting companies, are they all the same.

Invoice discounting should be a simple facility to operate but it's important you source from the right provider. There are variations in what the invoice discounter wants from you and dependant on what suits you business the rates will vary accordingly.  G.P.Commercial Finance have a broad range of invoice discounters that we can call upon and we can source the right supplier for your business. 

If you think invoice discounting might be right for your business, give us a call on 0845 123456 for more information"