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Invoice Discounting

Is your business, like many others, battling with cash flow? Invoice discounting may save your business, by taking off the cash flow pressure and giving you some breathing space.

Most new businesses fail within the first few years and this is often due to a lack of working capital and pressure on cash flows. Invoice discounting is a simple way to obtain working capital for your business. It allows flexible borrowing because you decide what your working capital requirement will be at any given time. Any business which regularly supplies goods or services on credit to a large company with a good credit standing, can use invoice discounting.

The mechanism is simple: the business sells its rights to future invoice payments to a finance house. The finance house pays the business owner immediately, takes over the invoice and collects the money from the debtor when the invoice is due for payment. The difference between the invoice amount and the amount paid to the business owner is the discount, i.e. the fee charged by the finance house.

CapX Finance provides both disclosed and undisclosed (confidential) invoice discounting to SMEs.