Invoice discounting is a financial service where businesses get immediate funds by using their unpaid customer invoices as collateral. Invoice Discounting allows businesses to unlock working capital by selling their unpaid customer invoices at a discount. This helps you get immediate funds without waiting for the customer to pay.
For example: After supplying goods or services to a large buyer, a business might need cash before the buyer actually pays (which may take 30, 60, or 90 days). With invoice discounting, the business can borrow against the value of those invoices, maintaining cash flow for ongoing operations, and then repay the lender once the customer clears the invoice.
Benefits :
- Improves cash flow without debt
- Customer continues to pay you (not the lender)
- Completely confidential and off-balance-sheet