Invoice Discounting

What is Invoice Discounting and how does it work?

Invoice discounting is when a company's unpaid accounts receivable is used as collateral for a loan. Invoice discounting enables businesses to leverage the value of their sales ledger.

When sending out invoices to customers, a proportion of the total amount becomes available from the lender, which provides your business with a source of working capital throughout the month while you wait for the payment of your invoice to be processed.

With invoice discounting, you maintain responsibility for your sales ledger as well as your payment chasing and invoice processing. The main difference between this method and invoice factoring is that your customer  is not aware that you have taken on cashflow finance. If you prefer to keep the financial arrangement confidential from your customers then Invoice Discounting may be the right product for you.

You no longer have to wait up to 120 days to receive payment for your goods and services, and you remain in charge of your own credit control processes, meaning that you continue to chase late payments and therefore your customers are not made aware of our involvement.

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You remain in charge of your own credit control processes, meaning that you continue to chase late payments and therefore your customers are not made aware of our involvement.

The benefits of Invoice Discounting with Hitachi Capital
    • Improved cash flow - release money tied up in unpaid invoices and boost your cashflow
    • Flexibility - your funding line increases at the same rate as your turnover meaning that you don’t need to renegotiate terms
    • Save time - relieve your business of the burden of credit control and concentrate on your core business 
    • Bargaining power - invoice factoring can help you to negotiate better terms with your suppliers
    • Faster growth - grow your business at a much faster rate due to the flexible funding line
    • Award-winning service - benefit from our award-winning client service

Awards and Accreditations

Best Invoice Discounting Provider 2020

Best Invoice Discounting Provider 2019

Best Invoice Finance Service 2018


  • Confidential Invoice Discounting Services

    Hitachi Capital Invoice Finance supply Invoice Discounting facilities to companies working in a wide range of sectors around the UK, with a turnover of £250,000 or more.

    Invoice Discounting is a perfect solution for issues such as late payments and seasonal demand which can cause a strain on your company's cash flow and prevent you from reaching your growth potential.

    Our Invoice Discounting facility will make the cash available quickly, leaving you to concentrate on running your business and not simply chasing invoices.

    You are able to utilise the money quicker to invest in assets and staff to help you secure new contracts or expand in to new areas.

    We are already supporting over 700 SMEs in the UK to reach their growth potential by using Invoice Finance to release cash tied up in unpaid invoices.

  • Why choose Hitachi Capital Invoice Finance?
      • A 6 month trial period so you can be sure the product is right for you
      • Followed by a 6 month rolling contract – we don’t tie our clients in for long periods
      • A one fee solution with no hidden fees
      • Award-winning client service by our team of expert Client Managers
      • Our Relationship Management team are in the field to visit you in person
      • We are part of Hitachi Capital (UK) PLC, a company that is going from strength to strength – we’re here for the long term.

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Case studies
Care agency services

Care agency services

From start to finish I was very happy with the service. Any changes were resolved straight away. The team took time to help me use the system and my client manager also came to visit me, so I can put a face to the person I speak to. It's these little touches that help businesses like mine. I’m already recommending Hitachi Capital to other businesses.

K P Burnley, July 2018

Construction recruitment

Construction recruitment

Hitachi Capital has been a breath of fresh air. From the initial contact, they have taken the time to fully understand our business and we have been given a seamless service of the highest quality. The team have been extremely efficient, always available, very communicative and have helped our business grow in the UK, Europe and now the United States.

M Stone, June 2018


Alternative invoice finance solutions from Hitachi Capital 
4.7/5

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Contact our friendly UK advisors on freephone

0808 250 0859

08.45 - 17.15 Monday to Friday


Invoice Discounting FAQ's

Is invoice discounting long term or short term?

Invoice discounting can be both a short term and long term form of borrowing. The majority of businesses incorporate Invoice Discounting in to their standard business operations, with any associated costs factored into overall profit margins and view the facility as a longer term solution.

 

What is Confidential Invoice Discounting?

Confidential invoice discounting (commonly known as simply “Invoice Discounting”), allows you to release money from your unpaid invoices to improve your cashflow.

 

What is Invoice Discounting in the UK?

Invoice discounting is another type of borrowing against your outstanding invoices and is used to help improve a company's cash flow position. It uses a company's accounts receivable as collateral for a loan which is issued by the finance company.

 

What is the difference between invoice discounting and factoring?

Invoice discounting allows you to retain control of the collection process and stay in contact with your customers directly, whereas with invoice factoring, the business sells its invoices to a third party and then the factoring company chases the unpaid invoices and sends payment reminders directly.

Generally speaking, invoice discounting facilities are used to leverage cash from your entire ledger, which means you’ll forward every invoice to your lender, and then settle your debts as you collect from your clients.

 

Is invoice discounting a good idea?

Invoice discounting is a good option is you carry out in-house credit management processes and have good relationships with your customers. It is also a good idea if you want to keep our involvement confidential. Businesses looking for this facility usually need to have a higher turnover of around £500,000 plus.. Otherwise, Invoice Factoring would be more suitable for a business looking to outsource their credit control and not have the confidentiality in place.