Discounting is a multi-trillion dollar industry

Invoice discounting is the practice of using a company’s unpaid accounts receivable as collateral for a loan, which is issued by a finance company.

The forthcoming business will have instant access to the funds to help their cash flow which will only pay interest on the amount they borrow in case their suppliers are not aware of the agreement.

Like for UK clients alone for the first three quarters of 2017, total sales (turnover) of clients supported by invoice finance and asset-based lending were up 4 per cent, standing at £214 billion.

 

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