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Understanding Invoice Discounting
Understanding invoice discounting for UK companies
Invoice discounting is a short-term invoice finance solution, enabling businesses to unlock cash tied up in unpaid invoices. Using accounts receivable as collateral, businesses can access funds without waiting for customers to pay, improving cash flow and enabling operational stability.
Boost your cash flow with invoice discounting
We compare all invoice discounting options for you, so you can rest assured you'll get the right product and the best deal for your business. Get a quote online or call us on 0808 250 0859 to speak to one of our invoice discounting experts.
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Pages in this SectionHow does invoice discounting work?
- Issue an invoice to your customer for goods or services.
- Submit the invoice to the invoice discounting provider.
- Receive an advance of 70-90% of the invoice value within 24-48 hours.
- Continue managing the customer relationship as normal.
- Once the customer pays the invoice, the remaining balance (minus fees) is released to your business.
With Novuna as your invoice discounting company, you will receive an advance of 70-90% of the total invoice amount, enabling you to cover operational expenses, invest in growth, or address cash flow gaps without waiting for customers to settle their invoices.
How is invoice discounting different from other forms of invoice finance?
Invoice discounting is different to other forms of invoice finance as you maintain control of your sales ledger and continue handling customer relationships directly - the customer may not even be aware that their invoice has been discounted. This makes invoice discounting an ideal solution for businesses seeking flexible funding without compromising their brand or customer experience.
Key benefits of invoice discounting
Confidentiality
Maintain customer relationships as they are unaware of the finance arrangement.
Retain control
Manage your own credit control and collections.
Scalability
As your sales grow, the available funding increases.
Advantages of invoice discounting over other finance options
Quicker access to funds
Receive funds within days instead of weeks or months.
Less stringent requirements
Approval is often based on the creditworthiness of your customers, not just your business.
Lower costs
Typically cheaper than invoice factoring due to the absence of credit control services.
How to apply for invoice discounting
Assess your needs
Determine if invoice discounting suits your business model.
Submit documentation
Provide the necessary invoices and business information.
Receive funding
Once approved, start receiving advances on your invoices.
Is your company eligible for invoice discounting?
Want to learn more about how you can boost your business's cash flow?
Our Cash Flow Resource Hub has been set up to help SME's with cash flow finance advice, tips and resources to help with their cash flow position.
We explore ways you can begin improving your cash flow and start getting your business on track to positive cash flow.
Expand your operations
Invest in stock, machinery or equipment
Employ new members of staff
Fix long-standing issues with cash flow
Why choose us as your invoice discounting company?
Award winning invoice discounting facility
Innovation in the SME Sector 2024
Alternative SME Lender of the Year 2023
SME Lender of the Year 2023
Best Use of Technology 2023
Best Provider 2023
Highly recommended by our customers
"The communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll."
Read full reviewWe are revolutionising invoice discounting companies in the UK
6 month trial period
A 6 month trial period so you can be sure the product is right for you, followed by a 6 month rolling contract – we don’t tie our clients in for long periods.
Digital onboarding
We are the first in the market to offer a digital onboarding process and have been leading the way with our digital capabilities allowing clients to sign up within 24 hours from the first appointment.
Client trust account
Once you become a client you will be given your own trust account, meaning you will get same day availability on your funds. You can also view all of your invoices and payments online at a time suitable to you, 24/7.
No uncleared effects
We have heavily invested in our digital capabilities. This includes the auto allocation of payments using Artificial Intelligence. Ultimately this advance in technology means that our clients access money quicker as well as saving money on interest charges due to auto allocation.
Simple pricing
We aim to make the process of Cash Flow finance as simple and straightforward as possible. Our pricing is very straightforward to understand. For a no obligation quote or an informal chat you can call our friendly team today on 0808 250 0859.
Award winning service
We offer award-winning client services and individual Relationship Managers who are on the other end of the phone or out in the field to visit you in person.
Are slow invoice payments causing you cash flow problems?
Get in touch today
Contact our friendly UK advisors on our freephone
0808 250 0859
8:45 - 17:15 - Monday to Thursday &
8:45 - 16:45 - Friday
Invoice discounting FAQs
How does invoice discounting differ from invoice factoring?
Invoice discounting is confidential, allowing businesses to manage their own credit control. Factoring involves the provider managing credit control and is visible to customers.
Can small businesses use invoice discounting?
Yes, small businesses with reliable customers and a turnover of at least £250,000 per year are typically eligible for invoice discounting.
Is invoice discounting regulated?
While invoice discounting itself isn’t directly regulated, it’s important to choose a provider that is reputable and FCA-compliant.
How long does invoice discounting take?
While invoice discounting itself isn’t directly regulated, it’s important to choose a provider that is reputable and FCA-compliant.
