Release a percentage of your unpaid invoice
Invoice Discounting
Turn unpaid invoices into working capital.
Access cash tied up in your sales ledger — confidentially, and without changing how you deal with customers.
Book a demoWhy discount it?
Profitable businesses still run out of cash.
Waiting 30, 60 or 90 days to be paid puts pressure on even healthy businesses. Stock has to be bought, payroll has to run, suppliers want paying — long before your customer does.
Access funds usually ready in 24–48 hours
When your customer pays, the balance is released, less fees
How it works
From invoice raised to cash in your account
From invoice raised to cash in your account
A simple route to working capital
1
Raise the invoice
Issue the invoice to your customer as usual.
2
Lender advances cash
Receive a percentage of the invoice value, typically within 24–48 hours.
3
Customer pays you
You continue to manage collections. Confidential facilities mean the customer never knows a lender is involved.
4
Balance released
Once the invoice is paid, the remaining amount is released, less agreed charges.
Who's it for
Suited for established companies with strong debtor books
B2B sellers on credit terms
Manufacturers, wholesalers, recruiters, logistics, construction, engineering and B2B services.
Reliable, repeat customers
Predictable debtor balances and a clean payment history.
Growing revenue
Funding that grows with sales, not a fixed loan that caps you at last year's number.
Strong credit control
Internal processes already in place to chase, verify and collect.
Discounting vs factoring
Two different products. One key choice. Who manages collections?
Invoice Discounting
Book a callYou manage collections. Usually confidential — customers never know. Best for businesses with strong credit control already running well.
Invoice Factoring
Read moreLender manages collections. Customer-facing. Best for businesses that want collections support and the credit control resource that comes with it.
Comparison matrix
Which one is right for you?
| Collection | Confidentiality | Credit control | Cost / fees | Typical user | |
|---|---|---|---|---|---|
Invoice discounting | Your team manages chasing and collection. | Completely confidential. | Your business retains responsibility for vetting clients. | Generally lower. | Established businesses with strong internal credit teams. |
Invoice factoring | The provider chases and collects payments from your customers. | Highly visible to clients. | Completely confidential. | Generally higher. | Smaller / newer businesses wanting to outsource credit control. |
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Invoice discounting costs
Two main charges and a long tail of fees worth checking
Service fee
A percentage of turnover or invoice value, for managing the facility.
Discount charge
Interest on the funds advanced, based on how long they're outstanding.
Watch for additional fees
Arrangement, audit, minimum, CHAPS, renewal and exit charges all affect the real cost. So do advance rates, concentration limits and excluded debtors. The cheapest headline rate rarely wins.
Lender criteria
What lenders actually look at
A strong debtor book can sometimes support funding even where traditional lending is harder to access.
Book a callTurnover & growth
Trading trajectory and the funding need it creates.
Debtor quality
Customer concentration, payment history, collectability.
Credit control
Sector, contract terms, and how cleanly you collect.
Existing position
Other borrowing and any HMRC arrears.
Before you sign
Five questions worth answering first
Before continuing, have a think about these critical questions.
Need help? Talk to us- 1. What percentage of invoices will actually be advanced, and are all your debtors eligible?
- 2. Is the facility confidential, or will customers be notified?
- 3. What is the minimum monthly fee and the contract length?
- 4. Are there exit fees, and how is bad debt protection priced?
- 5. Does the facility integrate with your accounting system?
Get started
Unlock the cash sitting in your sales ledger
Stable helps UK SMEs compare invoice discounting providers, understand the true cost, and secure working capital with confidence.
FAQs
Frequently asked questions
Is invoice discounting confidential?+
Usually yes. Most facilities are confidential — your customers continue paying you as normal and need not know a lender is involved.
How much can I borrow?+
It depends on your debtor book, turnover, customer quality and the lender's advance rate. Many facilities advance a percentage of eligible invoice value.
Is invoice discounting a loan?+
Not quite. It is a funding facility secured against unpaid invoices. The amount available moves in line with your sales ledger.
What is the difference between invoice discounting and factoring?+
With discounting, you keep control of collections. With factoring, the lender manages customer collections for you.
Can it replace an overdraft?+
Often yes. For businesses with strong debtor balances, invoice discounting can be a more flexible working capital facility than an overdraft.
How quickly can it be arranged?+
Timescales depend on the lender, your accounts, debtor book, systems and facility size. Some facilities can be arranged quickly if information is ready.
Will it affect customer relationships?+
Confidential invoice discounting is designed to minimise disruption. You continue managing the customer relationship directly.