What is invoice discounting?
Invoice discounting is a simple way to improve cashflow by releasing money tied up in unpaid invoices. Instead of waiting for customers to pay, your business can access funds quickly and keep moving.
Invoice discounting, similar to factoring, is a solution to raise funds for your business by assigning your invoice debts.
Benefits of invoice discounting
Invoice discounting can give your business faster access to money it has already earned, helping you stay in control of day-to-day cashflow.
- Improve cashflow
- No hidden fees
- No minimum turnover
- Faster payments
- Easy to understand
How invoice discounting works
When your business raises an invoice for goods supplied or services completed, you send the invoice to Panel Financial.
We review the invoice and, subject to your customer profile, pay you up to 97% of the invoice value. The money is paid directly into your bank account, usually the same day.
Panel Financial then sends the invoice to your customer and collects payment from them when it is due. Your customer can be made aware that Panel Financial is managing the invoice and payment process, so everything is clear from the start.
This helps improve your cashflow by giving your business faster access to funds, while removing the need for you to chase the payment yourself.
How it works
Invoice discounting example
ABC Bodyshop raises an invoice for £1,100.00 to Direct Line Insurance for repairs to an accident damaged vehicle.
ABC Bodyshop emails us the invoice and we pay £1,067.00 into their bank account the same day. We then send the invoice to Direct Line and 45 days later we get sent a cheque from Direct Line for the invoice.
This has allowed ABC Bodyshop to pay their staff, pay their parts suppliers and to get on with the next job.
All of this has only cost ABC Bodyshop just £33.00.
A flexible solution for your business
Invoice Discounting works for all sizes of businesses. Big, small, VAT registered, non-VAT registered, sole traders, partnerships and limited companies.
Whether you need support paying suppliers, covering wages, managing regular costs or taking on new work, invoice discounting can help bridge the gap between raising an invoice and receiving payment.
We take control of your invoices, so you can take control of your business.