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Invoice Discounting in a type of invoice finance that provides a business with enough cash to fund its working capital requirements. A facility enables a business to raise cash against your business to business invoices, without having to wait weeks or months for payment improved working capital.

  • The improved cash flow that invoice discounting offers can enable a business to buy more competitively from your suppliers by obtaining early payment discounts.Invoice discounting funding can grow in line a businesses turnover; the more it invoices, the more funding is available. Most invoice discounting facilities are kept confidential from a business’s customers. An Invoice discounting facility can either operate on a Confidential or a Disclosed basis.

So, what is a ‘Disclosed’ invoice discounting facility?

  1. Many businesses in the UK do not qualify for confidential invoice discounting facility because their turnover is not high enough, their net assets are not high enough or their collections department is not efficient enough. In these instances they have the option of ‘disclosed invoice discounting’.
  2. Disclosed invoice discounting is often know as ‘ D I D’.
  3. Disclosed invoice discounting is similar to normal confidential invoice discounting BUT the main difference is that customers have to pay the invoice finance company direct.
  4. Under a disclosed invoice discounting arrangement submitted invoices would have a note on them saying that the “invoice has been assigned to an invoice finance provider”.
  5. Please note that disclosed invoice discounting facilities are usually double the cost of confidential invoice discounting facilities because there is more administration staff involved in the process.

Please note that an Invoice discounting facility can either operate on a confidential or a disclosed basis. If you are unsure what method of invoice finance is best for you please call 0800 597 4757 or apply online.