Bespoke Invoice Discounting
Invoice Discounting is a core finance product for Pinnacle and we have a wealth of knowledge and experience with this product. It can transform a business's cash-flow. Find out more.
Pinnacle SME Business Funding
What is Invoice Discounting?
What is Invoice Discounting, is a common question we get asked at Pinnacle. This is because many businesses understand invoice factoring but might be unaware of invoice discounting. Invoice discounting is the process of where a business invoices another business (B2B) for work they have completed. Once they invoice out the invoice financier will advance typically up to 90% of the value of the invoice. The business will be responsible for collecting in payment from the customer. They still administer credit control and commonly a business must upload an amount the invoice was for onto an online portal. Not having to send copy invoices into the finance company and retain credit control. Invoice discounting is reserved for the higher turnover level business’s with typically over 12 months trading history and turnover levels in excess of £300,000. Many businesses think of it as short-term loan or cash advance against outstanding invoice with the security of funding.
Benefits to each type of invoice finance.
Invoice Discounting vs. Invoice Factoring
There are benefits to each type of invoice finance facility depending on the requirements. The main benefits of invoice discounting is, more control is kept by the business and can retain customer relations when collecting payments. Secondly workload is less for the business and when used correctly can really benefit cash flow.
The benefits of factoring can be reduced workload of in relation to credit control, as the invoice financier can collect in the payments. Furthermore, factoring can be used to support SME’s across the UK with business growth and obtaining a positive cash-flow position. Especially for new start business that need access to commercial finance.
There for you when you need us
Find out if you are eligible
Pinnacle business finance is there for you when you need us. We are the customer focused broker which specialises in invoice finance and commercial loans. We can assist with securing and tailoring an invoice discounting facility for your business. The enquiry form is listed below for you and one of our funding specialists will be on hand to support you.