There are benefits to each type of invoice finance facility depending on the requirements. The main benefits of invoice discounting are, that more control is kept by the business and can retain customer relations when collecting payments. Secondly, the workload is less for the business and when used correctly can really benefit cash flow.
The benefits of factoring can be reduced workload in relation to credit control, as the invoice financier can collect the payments. Furthermore, factoring can be used to support SMEs across the UK with business growth and obtaining a positive cash-flow position. Especially for new start businesses that need access to commercial finance.