What Is Invoice Discounting and How Can It Benefit Your Business?
Establishing and maintaining a successful business is hard work. There are so many things to think about, from marketing and sales to operations and finance. One of the most important but often overlooked aspects of running a business is cash flow. Cash flow is the lifeblood of any organisation and ensuring you have enough money coming in to cover your expenses is critical for success. That's where invoice discounting can help. Invoice discounting is a type of factoring that allows businesses to get paid sooner for the invoices they issue. Here we'll explain what invoice discounting is and how it can benefit your business. What is invoice discounting? Invoice discounting is a form of short-term financing that allows businesses to get cash for the outstanding invoices they have. In short, it's a way for businesses to get money upfront for the goods and services they have already provided. Here's how it works: the business sells its invoices to a third party (the inv...