Invoice Discounting

What is Invoice Discounting?

Invoice Discounting is a financial service that allows businesses to unlock the cash tied up in their outstanding invoices. This service provides immediate access to up to 90% of your outstanding Invoices , improving cash flow and enabling businesses to meet their financial obligations without waiting for clients to pay their invoices.

Unlike Factoring, with Invoice Discounting the provider does not contact your customers. Responsibility for credit control remains with you and your business. Your customers will usually pay into a separate account known as a trust account.

When your customer pays, you will receive the remaining balance less any agreed fee.

*Apply for £25k to £10m

*All credit profiles considered

How does Invoice Discounting Work?

Create Invoice – You provide goods or services to your customer and issue an invoice.
You submit the unpaid invoice to an invoice discounting provider – or bulk upload.
Immediate Cash Advance: The finance provider advances you a percentage of the invoice value, typically between 70-90%
You manage your own credit control
Your customer pays the invoice on their usual terms into a trust account – bank account in your business name but controlled by the lender.
Once the invoice is paid in full, the finance provider releases the remaining balance to you, less any pre agreed fee.

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Benefits of Invoice Discounting

Improved Cash Flow: Receive immediate funds to cover expenses, invest in growth, or manage unexpected costs.
It’s confidential – With invoice discounting, you can keep customer relationships intact and continue managing your collections.
Flexible Funding: Financing scales with your sales, providing access to more funds as your business grows.
Relies on creditworthiness of your customer
Option to insure against risk of non payment
No Additional Debt: Unlike loans, invoice finance doesn’t add debt to your balance sheet, making it a healthier financial option.

Is Invoice Discounting right for your business?

With a wide and varied range of funding solutions and lenders, it can be difficult to understand which is the best option for your business. At Aim Financial Solutions, we will help you to understand which funding options are the best solution for your business and we will help you to secure the most competitive terms with the best lender for your circumstances.