Invoice Discounting and Invoice Finance are terms that are often switched between when lenders are marketing their services.
If you’re reading this you probably have some understanding that invoice discounting and invoice finance involves the process of obtaining funding upfront from unpaid invoices. As you raise new invoices in your business you can instantly drawdown funds against these to accelerate cash flow.
Invoice discounting and invoice finance are umbrella terms for two specific types:
Your customer or end-user is unaware of the funding being provided, sometimes also called ‘invoice discounting’.
Traditionally referred to as ‘invoice factoring’, where invoices have a notice that tells the customer to pay the funds to the financier and the financier is free to chase the debt directly.
“the whole process from applying for the facility to the draw down stage was so straight forward” More at @Xero https://t.co/SGSHyz3pkD pic.twitter.com/eoXvxOhqqN
— Waddle (@getwaddle) December 13, 2016
How does Waddle’s Invoice Finance fit in?
Waddle’s invoice financing transactions are structured to resemble a perpetual line of credit similar to how a credit card works You can draw down and repay funds as you need, only paying interest on the balance. Instead of the line of credit based on the value of your real estate, it’s instead tied to the value of your on-going receivables and is a completely confidential service.
You link your accounting software and Waddle establishes a credit limit against your invoicing that automatically adjusts as you raise new invoices or reconcile payments in your accounting software.
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