If you’re waiting weeks or months to be paid, invoice discounting gives you access to that money quickly and efficiently. It’s a short-term borrowing strategy wherein a business sells its outstanding invoices at a discount to a financier. We advance a percentage of your invoice amount, giving you access to a valuable infusion of capital so you can keep things moving.
The discount rate for invoice discounting depends on various factors, including the financier, the creditworthiness of the business, and the specific terms of the agreement. Typically, discount rates can range from 1% to 5% of the invoice value per month. The precise rate is negotiated between the business and the financier and is influenced by the perceived risk and terms of the financing arrangement.
The amount advanced against the invoice value varies and is often determined by factors such as the creditworthiness of the business’s customers and the terms of the financing agreement. Generally, a percentage of the invoice value, typically ranging from 70% to 90%, is advanced, with the remainder paid to the business (minus fees) once the customer settles the invoice.
Turn Your Invoices Into Immediate Capital.