Invoice discounting is a form of financing that allows businesses to get cash for their invoices. Invoice discounting is also known as invoice factoring, invoice funding, and bill discounting.
What Is Invoice Discounting?
Invoice discounting and bill discounting are not the same as factoring, despite all three being used to finance business. Bill discounting, where a bank buys your invoices at a discounted rate, is less expensive than invoice discounting. The latter involves the lender buying your invoices at an even greater percentage off than what they are worth.
