Although the terms "Invoice Discounting" and "Invoice Factoring" are often used interchangeably, we regard it as two closely aligned financing products.
In terms of "Invoice Factoring", a business would typically have a good spread of clients of varying sizes, in various industries, with good payment histories. We provide an ongoing facility against this debtors book, which is based on our assessment of the book's credit standing, the client's own trading history and its balance sheet.
Although we confirm invoices with the debtors, we do not require payment undertakings from them and we do not take over the collection of the client's book unless we are specifically requested to do so.
This product therefore suits a stronger business with a good spread of debtors, instead of a few larger debtors.