Invoice discounting: cash advanced, your customers see nothing change
A confidential form of invoice finance for established businesses that already run their own credit control.
Who it suits
- Established businesses with an in-house credit-control process
- Businesses that value customer relationships staying untouched by a third party
- Turnover from roughly £250,000 a year, with reasonably current management accounts
- Logistics, manufacturing and business-services firms with steady, larger customers
Worked example
The same £85,000 monthly invoicing book on 60-day terms, this time discounted at 88%:
Cost anatomy
| Fee | What it covers | Typical range |
|---|---|---|
| Service fee | Facility administration and periodic ledger review (you keep running collections) | 0.2–1.0% of turnover |
| Discount fee | Cost of the funds advanced, charged on drawn balance | Base rate + 1.0–2.5% |
- Annual or semi-annual audit fees to verify your sales ledger
- Minimum-usage charges in quiet months
- Bank-guarantee or set-up fees added at the start of the facility
- Renewal fees on multi-year contracts with auto-renewal clauses
- Concentration limits capping funding once one customer dominates your book
Frequently asked questions
No, that is the point. You keep collecting payment as normal, under your own name, and the funding partner sits behind the scenes. This is why it is often called confidential invoice discounting.
Yes. Because you keep running collections yourself, funding partners usually expect a working credit-control process and up-to-date management accounts before approving a discounting facility.
Often slightly, because you are handling collections rather than the funding partner, but the difference is small. The bigger driver of cost is your debtor quality and turnover, not the product choice itself.
Discounting typically suits businesses turning over roughly £250,000 a year or more with an established sales ledger and credit-control process. Smaller or newer businesses are usually better matched to factoring.
Two minutes, soft checks only, no impact on your credit score.
See how much you could releaseLast reviewed: August 2026
See how much you could release.
Two minutes, soft checks only, no impact on your credit score.