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How Confidential Invoice Discounting Will Benefit Your Customers

A lot of small and medium business owners will start thinking of expanding their business once they have a stable cashflow and a loyal customer base. By expanding your business, you will be looking into new markets or even dealing with customers in different locations. This can sound quite scary at first, but confidential invoice discounting is a great way to ensure that your business can keep going while you are expanding, no matter if you are a start-up business or a well-established business!

If you have been looking into invoice finance you will realise that your customers could find out more about your financial situation than you’d like, which is why confidential invoice discounting might work better. With confidential invoice discounting you will still have working relationships with your customers but it will be completely confidential so your customers will never know that you are dealing with an invoice factoring company.


Is Confidential Invoice Discounting Better Than Invoice Factoring?

This all depends on what your business needs. If you want to spend some time growing your business or start a marketing plan, then you could opt for invoice factoring. This means that the factoring company that you use will take care of your accounts receivable and chase customers for payment. By choosing this method you will also be saving some money on staffing costs because there’s no need for an accounts receivable department. However, if you want to still control your relationship with your customers, confidential invoice discounting is the better choice.


Benefits of Invoice Factoring and Confidential Invoice Discounting

Whichever option that you go with, there will be many benefits for your business. Here are the pros for invoice factoring or invoice discounting:

  • Your cashflow will be stable so you can pay for staff and contractors on time and meet your commitments for tax and HMRC.
  • By having a factoring company that is experienced in your industry then you will always have expert advice on hand.
  • Invoice factoring means you won’t need an accounts receivable department, saving you money.
  • If you customers take weeks or months to pay you, you will still receive up to 90% of the funds in unpaid invoices in 24 hours.
  • You will still have control of your customer relationships if you choose invoice discounting.

Added: 02 May 2019 10:30

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