What is Invoice Discounting?

Definition: Invoice Discounting

invoice factoring and receivables financing

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WHAT IS INVOICE DISCOUNTING?

Invoice discounting is when the company that is billing its customer is in charge of collecting payments and maintains ownership of the invoices. The lender provides a loan or an advance based on the invoices' value.

We sometimes refer to this technique as "confidential invoice discounting" because the customer remains unaware that the company is using the invoice on a financing facility.

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