What is Invoice Discounting?

Invoice Discounting allows you to finance your sales ledger on an ongoing basis and release funds against unpaid invoices. It can help you to manage cash flow, so you can plan ahead with confidence and invest in staff, materials and equipment, while you’re waiting for customers to pay.

It’s a confidential service, so your customers won’t know that you are using it- and you’ll continue to manage your own credit control processes. 

Get a quote for Invoice Discounting

You can get an online quote in minutes, without affecting your credit rating.

Get a quote

What are the advantages of Invoice Discounting?

I need to improve cash flow

Invoice Discounting gives you fast access to cash on an ongoing basis to help you manage cash flow.

  • Access up to 90% of invoice value
  • Receive funds typically within 24 hours
  • As your debtor book rises, so does the amount of cash you can realise 

I want to manage my own sales ledger

One of the advantages of Invoice Discounting is that you maintain responsibility for your sales ledger as well as collecting payments from your customers.

  • Continue to manage your own credit control processes 
  • Maintain customer relationships yourself
  • Confidential so your customers won’t know you are financing invoices

I need flexible finance to grow my business

Invoice Discounting gives you access to additional funding when you need it to grow your business.

  • We offer Invoice Discounting for both UK and overseas debt in a range of different currencies
  • With earlier access to funds, you can negotiate early payment discounts with suppliers
  • Access to Asset Based Lending, an additional service to support strategic growth

I want to protect my business against bad debt

Invoice Discounting, when combined with our Debtor Protection service, can mitigate against the impact of late or non-payment from your customers.

  • You’ll also have access to our Debtor Protection service for further protection against non-payment
  • You can be protected for up to 90% of the value of an invoice, should your customer fail to pay or go into administration
  • We can help you spot a potential credit risk before it becomes a bad debt
  • Both UK and overseas debts can be protected

Invoice Discounting vs Invoice Factoring – what are the differences?

Invoice Discounting vs Invoice Factoring – what are the differences?

Invoice Discounting

Invoice Factoring

Invoice Discounting

Release funds against the whole sales ledger

Invoice Factoring

 

Invoice Discounting

Includes credit control services

Invoice Factoring

 

 

Invoice Discounting

Confidential service so customers are not aware

Invoice Factoring

 

 

Invoice Discounting

Debtor Protection

Invoice Factoring

 

 

Invoice Discounting

Asset Based Lending

Invoice Factoring

 

 

How does Invoice Discounting work?

Day 1

You supply services or goods to your customer and send invoice details to us. The invoice is sent to your customer, with payment terms and details clearly marked.

Day 2

We pay you up to 90% of the invoice value, typically within 24 hours.

Day 2-30

You can use your funds to support your business ambitions.

Day 30+

Full payment received from customer. We forward on the balance of the invoice value to you, minus a small fee.

How Invoice Discounting works?

How Invoice Discounting works

Does my business qualify for Invoice Discounting ?

Invoice Discounting is available to new and existing Lloyds Bank customers who:

  • Have a minimum turnover of £250,000 per annum
  • Sell business-to-business and on credit terms

Get a quote for Invoice Discounting

You can get an online quote in minutes, without affecting your credit rating.

Get a quote

Asset Based Lending

Increase your working capital by turning business assets into cash.

Available alongside a Lloyds Bank Invoice Discounting facility, and if your business turnover is more than £10 million.

Debtor Protection

Give yourself peace of mind by protecting up to 90% of an invoice, should your customer fail to pay.

Available alongside a Lloyds Bank Invoice Factoring or Invoice Discounting facility, and if your business turnover is more than £200,000.

How much does Invoice Discounting cost?

Each agreement is priced individually to your business. To find out more, give us a call on 0800 169 4356.

To further support our values in being transparent with clients, please view our Operating Conditions Fees and Charges. These fees and charges do not apply to clients who typically have an annual turnover of more than £25 million.

If you are an existing client and are unsure whether these other fees and charges are applicable to you, please check with your Client Manager.

Discuss your needs with an Invoice Discounting specialist

Call 0800 169 4356

We’re available from 9am to 5pm, Monday to Friday, except public holidays.

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Other Invoice Finance solutions

If Invoice Discounting isn’t right for your business, and you only have occasional cash flow challenges, we also offer selective funding.

Choose which invoices you’d like to fund and access a suite of useful risk insight tools to help protect you from the risk of late payment.

Other borrowing options

Whether you’re an established business or just starting out, finding the right finance product to meet your needs can be difficult.

We want to make it simple for you to compare and choose our products, whatever your business circumstances.

Important Legal Information

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

Factoring and Invoice Discounting facilities may be provided by one or more of Lloyds Bank Commercial Finance Limited, Lloyds Bank plc and Bank of Scotland plc. Lloyds Bank Commercial Finance Limited. Registered in England & Wales no. 733011. Registered office: No.1, Brookhill Way, Banbury OX16 3EL. Lloyds Bank plc. Registered in England and Wales no. 2065. Registered Office: 25 Gresham Street, London EC2V 7HN. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. Bank of Scotland plc. Registered in Scotland No.SC327000.  Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration no. 169628.