Bespoke Invoice Discounting
Invoice Discounting is a core finance product for Pinnacle. 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.