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Invoice Discounting

Get paid faster with invoice discounting

Invoice discounting enhances your cash flow by providing immediate access to funds tied up in outstanding invoices.

Happy business owner after receiving invoice discounting facility

What is invoice discounting?

Invoice discounting, like invoice factoring, is a financial solution that helps businesses improve their cash flow. 

In essence, it allows businesses to unlock the money tied up in their invoices, enabling them to have quicker access to the cash.

What sets invoice discounting apart is it allows businesses to retain control over customer relationships and payment collections. This confidentiality stems from the fact that it is a discreet financial arrangement. 

As a result, your customers will be unaware of this facility. This means your business maintains its usual interactions with customers while still benefitting from accelerated cash flow.

How does invoice discounting work?

Invoice discounting is a way to get money from your invoices faster, whilst retaining confidentiality and control of your collection process.

Here’s how it works:


Do your work

First, you provide your product or service to your customers, just like normal.


Send an invoice

After the job is complete, you send an invoice to your customer, asking for payment.


notify your Funder

Share a copy of the invoice amount with your discounting partner.


Get paid quickly

Your funder then deposits up to 90% of the invoice value into your bank account, typically within a few days


Confidential Account

Your customer pays into an account under your name, maintaining the confidentiality of your arrangement.


Fees are deducted

The discounting company will deduct any prearranged fees and forward the remaining balance to you.

Who is invoice discounting for?

Invoice discounting is a versatile financial solution for B2B (business-to-business) companies in the UK. This facility particularly caters to businesses that issue invoices with extended payment terms, often ranging from 30 to 90 days or more.

To qualify for this service, most invoice discounting providers typically require businesses to have a minimum of 12 months of trading history and a net turnover exceeding £250,000.

We assist businesses from various industries in finding the ideal discounting partner to meet their unique needs.

Business woman on laptop looking at invoice discounting.

Why Choose Us?

Fast & Flexible

Expertise & Experience

Tailored Solutions

Benefits of Invoice discounting

Invoice discounting offers several benefits to businesses. Helping them manage their cash flow and improve financial stability.

Here are some key advantages:

Improved Cash Flow

It helps to bridge the gap between issuing an invoice and receiving payment. Ensuring a steadier cash flow for day-to-day operations.

Don't take on new debt

Invoice discounting is not a loan, so it doesn’t add debt to your balance sheet. It’s a way to leverage your existing assets (invoices) for cash.

Maintain Confidentiality

Your customers are unaware of the financing agreement. This allows you to maintain control over customer relationships and collections.

Competitive Advantage

Having access to cash when you need it allows you to take advantage of growth opportunities and meet customer needs.

Close-up stack of invoices ready for invoice factoring

How much does invoice discounting cost?

The cost of invoice discounting can vary depending on the provider, your business terms, and the volume of invoices you’re looking to fund.

Some common cost components include:

  • Set up fees
  • Service fee
  • Additional costs
  • Optional Credit Protection fees
  • Interest charges (known as discount)


For an educated estimate of how much invoice discounting might cost you, check out our invoice finance cost calculator.


Invoice discounting and factoring are similar but have key differences. Invoice discounting is confidential, meaning your customers are unaware of the arrangement, and you maintain control over collections. Factoring involves the sale of invoices to a third party who takes over collection responsibilities.

Check out our blog, what is the difference between Invoice Factoring and Invoice Discounting, for more information

Typically, businesses can access up to 90% of the invoice value, depending on the provider.

Funds are often available within 24-48 hours of invoicing approval by the discounting provider, making it a swift source of cash.

If your customer fails to pay the invoice, the responsibility for collecting the payment may vary depending on your agreement with the discounting provider.

Typically, invoice discounting is confidential, meaning your customers are unaware of the financial arrangement. You maintain control over customer relationships and payment collections.

“Jonathan from Smart business Finance is always there to offer advice and to point us in the right direction to any questions we have and to tell us of the best deals for finance for our company. We have no problem in saying we as a company would use these people at any time“.

Ged Flinders

East Coast Logistics Ltd


‘We have dealt with the Team at Smart Business Finance for over 3 years. They introduced me to my finance partner and have since helped to source a credit protection policy for me. Jonathan has gone above and beyond for me through our business transitional period.

Jay Kahn

Higher Healthcare


“Extremely helpful and friendly; they found the best service that suited my business needs. Always checked in to see that I was happy with the services after. Their dedication to ensuring my satisfaction and the exceptional level of service they provided truly exceeded my expectations.”

Asfana Ali

Prioritising People


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