“Invoice discounting enables you to leverage your customers’ unpaid invoices to quickly release cash back into your business enabling future growth.”
Richard Huxley Director
Invoice discounting
Invoice discounting with Huxley Corporate Finance is a short-term finance solution that allows you to release funds locked up in your customers’ unpaid invoices.
Invoice discounting
explained
Invoice discounting, also known as invoice financing, will leverage your customers’ unpaid invoices to quickly release cash back into your business, enabling you to grow your business. With this form of invoice financing you will enter an agreement with the finance provider whilst retaining full control of the management and collection of your debtor records. You will still be responsible for collection of your customer payments.
Unlike a traditional fixed bank overdraft facility, invoice finance will grow in line with your sales because each invoice is individually financed as you raise it.
Simply put, invoice discounting allows you to borrow money quickly, with a fast turnaround and no risk to assets.
Invoice discounting made simple
The invoice discounting option is a short-term finance solution ideal for SME businesses. Instead of waiting on outstanding invoices to be paid, this confidential agreement releases funds by utilising the security of those invoices:
- Your invoices are your collateral against the loan security making it easier to obtain funding than traditional bank loans, ideal if you have limited assets available
- You will receive a high percentage of the invoice value, usually within 48 hours of submitting an invoice
- Invoice discounting is completely confidential so your customers are not aware of the financing agreement
- As your debtor book increases so does the amount of cash you can release
Invoice discounting FAQs
What is the difference between confidential invoice discounting and invoice factoring?
Invoice discounting is normally confidential and is sometimes called ‘confidential invoice discounting’. With this form of funding you will continue to deal with your customers as normal, chasing invoices in the usual way — they won’t know you’re using a finance provider.
There is another invoice financing option called invoice factoring. In this case the factor (lender) collects the customer payments on your behalf. This option is good for small businesses (including new start-ups), or those that don’t have their own credit control department.
How much can I borrow against my invoices?
You can usually access up to 90% of the value of your outstanding invoices, depending on your sector, customer base, and the quality of your debtor book. The remaining balance (minus fees) is paid to you once your customer settles the invoice. This can significantly improve your cash flow, especially if your customers take 30–90 days to pay.
How long does it take to release funds from my invoices?
Funds can often be released within 24 hours of submitting an eligible invoice. Once your facility is in place, accessing capital becomes a fast and seamless process. For new facilities, setup may take a few days to a week, depending on the complexity of your business and the lender’s requirements.
Is invoice discounting right for my business?
Invoice discounting works best for businesses that:
- Issue invoices to other businesses (B2B)
- Have strong, creditworthy customers
- Want to retain control over credit management
- Experience delays between raising invoices and receiving payment
It’s ideal for companies looking to smooth cash flow, support growth, or unlock working capital without taking on new debt.
What are the benefits of invoice discounting over other borrowing options?
Key advantages include:
- Immediate cash flow boost from unpaid invoices
- Confidentiality — your customers are unaware
- Scalability — funding grows in line with sales
- No need to give up equity or take on long-term debt
- Faster access to funds compared to traditional loans
It’s a flexible way to bridge payment gaps and keep your business moving.