Confidential invoice discounting works much like factoring, but you handle credit control. The bank details on your invoices are in your name via a trust account. Additionally, your business must run monthly reconciliations with the lender using your accounting software.
This service gives your business up to 95% of the invoice value within hours of raising it, with the remaining 5% provided when your client pays.
Simply put, you generate the invoice, upload the values to the lender’s portal, and request the amount you need. You collect the invoice debt, and once it’s paid, the remaining balance is made available to you.
How does it work?
You generate and send the invoice to your customer as usual.
You input your invoice values to the lender’s portal, manually or automatically.
The lender immediately advances you up to 95% of the invoice value.
You manage the collection of payment from the customer and keep the remaining balance upon settlement.
Bad Debt Protection
Most facilities include bad debt protection to safeguard against instances where your customer fails to pay or enters administration (terms may vary).