Invoice Discounting
What is Invoice Discounting?
What is Invoice Discounting?
Invoice Discounting is a flexible funding solution that unlocks funds tied up in your unpaid invoices. By turning your sales ledger into working capital, it gives you faster access to funds to improve cashflow, support strategic change, and fuel business growth.
How does Invoice Discounting work?
Invoice Discounting allows you to unlock up to 95% of the value of your unpaid invoices, often within 24 hours of issuing them. Rather than waiting 30, 60 or even 90 days for customers to pay, you can access a steady flow of working capital to support day-to-day operations, seize new opportunities, and invest in future growth. Once your customer pays the invoice, you receive the remaining balance, minus any agreed fees.
Releasing the working capital you need to power your business
Does your business have the ambition to grow but lack the funding to make it happen? Our recent research with 1,000 UK SMEs found that around a third believe they don't have the cashflow needed to achieve their growth plans.
Invoice Discounting is designed to grow alongside your business. Our facilities support Finance Directors, CFOs and Managing Directors who need more than a traditional lending product. Whether you're restructuring, acquiring, expanding into new markets or responding to changing demand, your funding should adapt just as quickly. Unlike a traditional business loan, Invoice Discounting is a revolving facility, meaning the funding available increases as your sales grow, giving you the confidence and flexibility to scale.
Speak with one of our team today
How Invoice Finance supports business growth
Invoice Discounting is a key type of Invoice Finance - a funding solution that grows flexibly as your business expands. The more you invoice, the more funding you can access and far quicker than waiting for your customers to pay.
Watch our short video to find out more about how Invoice Finance provides funding for growth.
Here are 3 reasons to use Invoice Discounting
Access your cash within 24 hours of set up
Don't wait for customers to pay. Make efficient use of money you have already earned more quickly with Invoice Discounting.
Funding that grows with your business
Almost two thirds of SMEs expect sales to increase in the next 12 months. Invoice Discounting is a flexible funding solution that grows with your business.
Avoid taking on additional debt
Invoice Discounting releases funds tied up in unpaid invoices - money already earned. This avoids the need to take on additional debt, required with other forms of financing.
Client stories
Watch the success stories of two of our clients demonstrating what can be achieved through resilience, ambition and the right funding support.
Fort Builders' Merchant
Castell Group Ltd
Invoice Discounting considerations for my business. What if...
...I want to manage customer payments myself?
With Invoice Discounting you maintain responsibility for collecting outstanding invoices and the management of your customer relationships. With Invoice Factoring our dedicated credit control team collect outstanding invoices on your behalf.
...I have customers overseas?
Depending on how much you trade overseas, our specialist Export Finance solution could be a suitable option. Our Foreign Exchange services can also help you trade more efficiently with competitive rates for immediate or future trading needs. You can make overseas payments from your Invoice Finance facility or standalone.
...I have customers that can't pay?
Many businesses that use Invoice Discounting also choose our Bad Debt Protection. In this challenging economic environment, bad debt is on the increase. Alongside your Invoice Discounting facility, which works to improve cashflow, Bad Debt Protection works to protect against the impact of customers not paying their invoices.
Why choose Bibby Financial Services?
Flexible
We have over £1 billion in funding available. As a family-owned business large independent funder with decades of experience in Invoice Discounting, we combine the scale of our funding with an understanding of SMEs and ability to tailor finance solutions to their needs.
Relationship focused
In an increasingly tech driven environment, we continue to believe that business is personal. We use technology to enable relationships not replace them. We get to know our clients and understand their needs with dedicated contact points. You’ll know who in the team to call, not just a number.
Trusted
We have over 8,500 clients worldwide and are rated Excellent on Trustpilot. We are members of a number of financial associations including UK Finance, reflective of our commitment to high standards and best practice. We’ve been supporting SMEs for over 40 years.
Award-winning
As the UK's leading independent specialist Invoice Finance provider, we have been recognised with a number of awards. Most recently, in April we were awarded "Best Factoring and Invoice Discounting Provider" by Business Moneyfacts for the second year running, reinforcing our dedication to providing the best experience for our customers.
How we have helped other businesses
We’ve been supporting businesses for over 40 years across a wide range of business sectors…
£2 million funding provided
We provided a £2 million Confidential Invoice Discounting facility to support the growth aspirations of Midlands-based logistics business, which was subject to an MBO in 2022. Our client chose to work with us due to our expertise within the logistics industry and our ability to fund contractual debt.
- Industry sector:
- Transport & logistics
- Solution:
- Confidential Invoice Discounting
£4.5m funding provided
We supported a leading, family-run manufacturer with a £4.5 million Confidential Invoice Discounting facility. The funding we provided gave the business the additional cash and headroom it needed to facilitate its exponential growth.
- Industry sector:
- Manufacturing
- Solution:
- Invoice Discounting
£1.25 million funding provided
We provided a £1.25 million Invoice Discounting facility to Electrification Construction Services, a leading labour provider into the rail and civil engineering sector. Our package will provide the client with funding against application for payments.
- Industry Sector:
- Recruitment
- Solution:
- Invoice Discounting
£3 million funding provided
We funded retail point-of-sales manufacturer, Kesslers London Ltd, with a £3 million Confidential Invoice Discounting package. Our funding enabled the business to move to an upgraded factory facility facility close to its historic East London location, safeguard local workforce and support the ambitious growth strategy.
- Industry Sector:
- Manufacturing
- Solution:
- Confidential Invoice Discounting
What do our clients say about us...
Frequently asked questions
We have compiled a list of questions that we hear most often from business owners and financial decision makers considering Invoice Discounting