Factoring and Invoice Discounting – Which is right for you? (Visual Guide)

Factoring and Invoice Discounting – The Difference Infographic

Invoice finance can be broken up into two types of products; invoice factoring and invoice discounting, shown by this infographic.

Both invoice finance solutions provide the user with a percentage of the value of their unpaid invoice (up to 90%) in advance. This means that the user does not have to wait the 30, 60 or even 90 days that has been given to the customer as a time frame to fulfil the invoice payment.

The factoring company or invoice discounting lender will also usually be able to supply the cash within 24 hours, making a flexible finance option.

Invoice finance works by having a percentage of your invoice value advanced to you by a lender. Once the customer pays the invoice, you receive the remaining invoice balance from the lender minus service and borrowing charges.

Use our Invoice Finance calculation tool to find out how much invoice finance can advance and how much it will cost.

If you have any questions about invoice finance or any other forms of business funding, speak to our experts today for no obligation, confidential guidance 0845 017 7524.

Alternatively, get a quote by filling in a few fields of basic info (Revenue, Email, Name etc) with this form.

Apply now and one of our consultants will help to find you the best invoice finance facility for your business, free of charge.

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