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This method involves a business selling its unpaid invoices to a financial provider at a discount. The company receives a significant portion of the invoice value upfront, while the remainder, minus fees, is paid upon customer settlement. Unlike loans, invoice discounting doesnu2019t create long-term debt, making it an attractive choice for businesses of all sizes. Visit : https://simplyfactoringbrokers.co.uk/invoice-discounting/
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Invoice Discounting Invoice discounting offers a way to access immediate cash flow by selling your invoices to a factoring company. This can be a valuable solution for businesses experiencing cash flow shortages or looking to accelerate their growth.
How Does Invoice Discounting Work? Invoice Submission 1 The business submits its invoices to the factoring company. Funding Provided 2 The factoring company provides the business with a percentage of the invoice value. Invoice Collection 3 The factoring company collects the full amount of the invoice from the customer.
Benefits of Invoice Discounting Improved Cash Flow Reduced Administrative Burden 1 2 Invoice discounting allows you to access cash upfront, improving your cash flow and reducing your reliance on traditional bank loans. Factoring companies typically handle the collection of invoices, freeing up your time and resources to focus on your core business. Greater Financial Flexibility 3 Invoice discounting can provide you with more financial flexibility to invest in growth, seize opportunities, and manage unexpected expenses.
Contact Us Address Phone Website Simply Factoring Brokers Ltd 23 Bartlett Street, Caerphilly CF83 1JS 0333 772 1558 simplyfactoringbrokers.co.uk