20+ Years Experience
Specialist Invoice Discounting
We are invoice discounting specialists who have been operating for over 20 years and in that time we have assisted thousands of customers throughout the UK.
Our specialists are based across the country and they can offer competitive prices in April 2025 are able to get costs to you very quickly.
In our over 20 years of experience, we have managed to build a very large client base across the UK that would highly recommend us as a company. Don’t hesitate to get in touch today for a no-obligation quote!
Our specialists have many years of experience in the industry and we are more than happy to assist you with any information you may need or we can give you a free no-obligation quote!
Invoice discounting is a way for business owners to instantly gain access to any tied-up cash in their sales ledger, giving you a quick cash flow boost that can be an incredibly useful tool in the short term. However, it can also be very complicated, to the point that entire invoice finance companies have been set up to handle this for their clients.
If you are interested in finding the best discounting options available in April 2025, you first need to understand what invoice financing actually means and how it is supposed to work. We will also go over how this can impact your business and what kind of benefits you can get from invoice discounting if you do it correctly.
In short, confidential invoice discounting is when you use the unpaid invoices in your ledger to act as collateral for a loan, usually a loan that you urgently need (such as a loan to pay property rent within 24 hours, when your actual sales won’t be processed for two days). This means that you are trading all of your unpaid invoices for slightly less money instantly, removing the time you would have to wait.
To put it in even simpler terms, you are promising to give the loan company whatever unpaid invoices you have, and in return, they will give you somewhere around 90-95% of the value of those invoices as instant cash.
Once your customers pay their invoices, you send the money over to pay off the loan, meaning that you paid around 5-10% of your invoice value to skip waiting for your customers to actually pay. The process is called confidential invoice discounting because customers do not see any difference before and after it applies.
There are many benefits involved in invoice discounting some of these include:
If you would like more information don’t hesitate to get in touch with us today by filling out our contact form below!
The average cost of Invoice discounting is usually between 0.2%-0.5% of the companies turnover so if the turnover was £100,000 the fees would be between £200-£500, many factors go into the fee as well such as:
If you would like more in-depth costs get in touch with us today for a no-obligation quote!
This kind of business finance is an important part of being able to settle invoices since invoices are naturally quite slow and can often take a while to manage. Both large and small businesses can run into trouble with clients or customers who can’t close their invoices quickly.
While you sometimes have the option to sue them for the money they owe you but refuse to pay, that does not always mean that you will be able to pay off your own debts.
Whether it is invoice factoring, invoice discounting, or some other form of invoice management, you can essentially use it to get a smaller amount of money earlier, often within 24 hours of applying if you are lucky.
With a high enough advance rate, this can become an easy way to deal with client turnover problems or a lull in your cash flow, although it can still create a dent in your annual turnover if you are doing it on a regular basis.
We offer a number of great invoices discounting services and are more than happy in assisting you with anything you need.
Let us say you are a UK business that has ten clients, each of which has made a £100 purchase for a total of £1000. If only half have already paid their invoices – leaving you with £500 – then you might not be able to hurry the other half up.
If your rent would be £600, that means that you wouldn’t have enough to cover the rent, and taking out a normal loan could take a long time if you need to go through a full application process.
Instead, you could use invoice discounting to get most of that unpaid invoice value. The company or service may give you 90% of the unpaid £500, leaving you with £450 extra for a total of £950 in profits – enough to cover your rent. It is a form of asset-based lending, but the asset that you are basing the loan on is your unpaid invoice profits.
This can seem odd at first since it means that you are reducing your profits for no real reason, but it has a key purpose when it comes to invoices. Not all companies or clients pay invoices quickly, and many small businesses that buy from you might need a while to come up with the money to pay their invoices.
Through this kind of asset-based lending, you can get most of the money instantly without having to wait for their payments.
Invoice factoring and invoice discounting are very similar but serve slightly different purposes. With invoice discounting, your customers do not see anything different. For example, companies in the UK that owe money to Lloyds Bank (or any other bank) that need to have a loan paid off by April can set up an invoice discounting without their customers knowing anything has changed.
Invoice factoring is different: customers are aware of the changes because the invoice factoring company takes over your ledger and unpaid invoices. They essentially buy the responsibility of receiving those unpaid invoices from you, and your customers then pay the money to the factoring companies.
In a way, it is like reversing the process. Invoice discounting involves you getting a loan, receiving your paid invoices, and then paying the company that gave you the loan. Invoice factoring involves you getting a loan, and then making your customers pay the company that gave you the loan. Both are valid ways of achieving the same thing, with some other key differences.
Optional bad debt protection is one of the most useful things you can get when going through the invoice finance application process. Invoice factoring and invoice discounting carry plenty of risk for the person giving the loan since there is a chance that one of your unpaid invoices simply won’t be paid. Normally, this is considered your fault, since you promised the business finance that you can’t give them anymore.
Bad debt protection places the responsibility of payment on the customer or business that needs to pay the invoice, not you. This means that failure to pay their invoice does not put you at fault for the hole in your cash flow, meaning that the invoice discounting or invoice factoring companies focus their attention on whoever did not pay.
This is a great way to avoid the issue of a commercial finance invoice not being paid and then running into trouble when the invoice finance business asks for money that was never given to you. By using this protection (which often costs slightly more), you can instead put all of the responsibility on whatever business needs to pay the invoice, which saves you from even more business finance issues if they end up not paying (intentionally or accidentally).
Bad debt protection is entirely optional, but most companies will offer it in the application process. If you can get it, then it is generally a good thing since it allows invoice factoring companies to hunt down their money without holding you responsible.
Small businesses are especially encouraged to try and get BDP if it is available since it can keep them from becoming targets if they end up having a client who refuses to pay or disappears before they can settle the invoice.
Having BDP can still matter a lot in the business finance world since financial services that rely on other businesses paying an invoice can be unreliable. If those businesses decide not to pay, or delay their payment, then you are not going to have the same business finance information that you might have predicted (such as cash flow and profit), which can become a problem in a huge range of situations.
Finally, this covers you in the event of genuinely malicious attempts by businesses to avoid paying an invoice. While they are rare, especially in the UK (you can always check with representatives if a business manages to do it), some businesses may simply refuse to pay and try to run with whatever they bought, which can put an even worse dent in the cash flow of small businesses that can’t track down the offender.
We offer a lot of great invoice discounts our specialists will make sure you get the best services and we are more than happy in assisting you with anything you need more information on.
For more information about our services don’t hesitate to get in touch with us today using the contact form below and we will get back to you as soon as possible with a no-obligation quote!
Make sure you contact us today for a number of great invoices discounting services.
For more information on invoice discounting services, fill in the contact form below to receive a free quote today.
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