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Why choose invoice discounting vs factoring?

To some degree this decision is for the invoice finance provider, in the course of their credit approval. However, the following are some things to think about when deciding which sort of invoice financing facility to sign up to:

  • how many debtors do you have?
  • do you have a credit control function in your business?
  • do you want your customers to know that you have an invoice finance facility?
  • will the invoice finance facility (whether invoice discounting or factoring) apply to all of your invoices or selected invoices/customers?

Whether you are entering into an invoice discounting facility or a factoring facility, invoice finance is a niche area of finance and it is essential that you understand what you are signing up to, before you enter into a factoring or invoice discounting facility.

At Francis Wilks & Jones we have experience with a range of invoice finance providers and are well-acquainted with their facilities and security requirements – what is standard and what is not. Contact us now for specialist advice.

SME invoice finance is a great tool for businesses to have access to. However, they can be more complicated than they seem. At Francis Wilks & Jones we can guide you through the invoice finance process, and assist you through the life of the facility. Call us to discuss your needs with a friendly invoice finance expert.

Contact us in confidence