Exploring the types of invoice finance available to businesses.
Invoice finance can come in a variety of forms, most commonly invoice factoring and invoice discounting. We offer a brief overview of these forms of invoice finance below:
This works well for smaller businesses with limited or no bookkeeping or credit control function in-house. Credit control services are provided by the lender and they collect the invoice payments directly to ensure customers pay on time. Factoring is generally disclosed to your clients.
This is perhaps the simplest form of invoice finance. Unlike factoring, invoice discounting works well for businesses that have access to an in-house bookkeeping or credit control function and can collect/chase invoice payments themselves. Invoice discounting is generally confidential.
Millbrook can also arrange more intricate and specialised forms of invoice finance, including selective and spot discounting, construction finance and trade finance. Get in touch to learn more or browse our invoice finance solutions page.