While Invoice Discounting and Invoice Factoring both allow you to unlock the cash tied up in unpaid invoices, there is a key difference between the two.
With discounting, you remain responsible for collecting the outstanding invoice debt, which means you need to manage collection of your outstanding invoices from your customers directly. As a result discounting can be provided confidentially, so that your customers are unaware that you’re using invoice finance.
With Factoring, you’ll benefit from a full credit control service. This has the added benefit of allowing you to concentrate on growing your business without the added worry of chasing customers for payment. Given that we would be collecting the payments directly from your customers, factoring facilities are predominantly provided on a disclosed basis.
Asset Based Lending additionally offers you fast access to release working capital tied up in your assets. This may be suitable for larger businesses that are looking for a higher level of funding or for businesses looking to expand and need to relieve their cash flow pressures.
If you’re unsure about which invoice finance facility is the right one for you, please contact us and we can discuss what would be most suitable for your business.