Invoice Discounting - Benefits

Benefits

  • By receiving cash as soon as a sales invoice is raised, the business will find that its cash flow and working capital position is improved.
  • The business will only pay interest on the funds that it borrows, in a similar way to an overdraft, which makes it more flexible than debt factoring.
  • Invoice financing can be arranged confidentially, so that customers and suppliers are unaware that the business is borrowing against sales invoices before payment is received.

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