How does Invoice Discounting Work?

  • You raise your Invoices and Credit Notes as usual and send the information, typically electronically, to the Invoice Discounter. an invoice as usual. 
  • The Invoice Discounter makes available the agreed percentage of the Invoice value, up to 120 days old, by electronic transfer within 24 hours.
  • You send out monthly Statements and chase payments as usual.
  • The Invoice Discounter opens a trust account in your Company's name, into which you pay all cheques received. For electronic payments such as BAC's, you should include the Bank Details of the Trust Account on your Invoices and the client can pay directly into this account.
  • You then notify the Invoice Discounter of all deposits as and when they are received and they will, in turn, credit you with the balance i.e. less the initial payment and their charges.
  • The Invoice Discounter provides monthly bank statements showing all transactions although these details can be accessed by you at any time online.

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RBS
Bibby Financial Services
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Market Invoice
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