Invoice discounting is a type of invoice finance where businesses can borrow money against their sales ledger. Typically, they can borrow up to 90% of the invoice value. Confidential Invoice Discounting (CID) is the most common form, where the lender funds the sales ledger without the end debtor knowing. Unlike factoring, where the lender manages collections, in invoice discounting, customers continue to pay as normal. An example illustrates how the facility works, with the borrower accessing cash based on outstanding invoices. Security requirements vary but often involve a first charge debenture and some form of guarantee or indemnity against fraud.
What is Underwriting?
Underwriting is a risk evaluation process where financial professionals assess and price potential risks for
