Invoice Discounting, also known as Bill Discounting, is a confidential financing arrangement where a business takes out a short-term loan using its unpaid invoices as collateral.
Paying Operational Expenses
Covering recurring costs like employee salaries, rent, and utility bills.
Purchasing Inventory
Funding the purchase of raw materials or stock to meet sudden spikes in demand or to fulfill large orders.
Customer Pays You
On the due date, your customer pays the full invoice amount directly to your company's bank account, as usual. They are unaware of the financing arrangement.
