Benefits of using Invoice Discounting
As a flexible form of funding invoice discounting has many benefits. Whether you’re a startup or an established business invoice discounting could be beneficial to you.
Invoice discounting however is not without its faults. Below we have also noted some things you need to be aware of when finding and selecting a provider.
Benefits of using Invoice Discounting
Some of the benefits of using invoice discounting include:
- Release up to 90% of your invoices value the next day
- Grow your business by putting cash to work instantly
- The funds available to you grow in line with your turnover
- Operates as a confidential service – your customers never need to know you use the service
- Negotiate supplier discounts for prompt payment of invoices
- Factoring providers also prove to be excellent business advisors, helping you to grow your business.
- Retain control of your sales ledger, keep control of the relationship with customers and chase your own debts
Get a no-obligation quote now >>
Things to watch out for
Invoice discounting is more popular than ever with well over 50,000 companies in the UK using the service. Financing over £110 billion worth of invoices.
However, choosing the wrong provider could have a negative effect on your business. Some lenders operate in specific industries, turnover band, legal structures etc.
If you choose the wrong provider and decide you want to switch half way through your contract then your business could incur hefty fees. A lender will typically request all the fees they would have earnt had the contract run its course.
Before you enter into a contract with a provide speak to an independent party and discuss the funding options available to you.
At Touch Financial Support we’re not tied to any one lender. Meaning we can discuss your requirements and suggest the best financing option to suit the needs of your business.
