Invoice Discounting
/ˈɪnvɔɪs dɪsˌkaʊntɪŋ/
Definitions
- (n.) A financing arrangement where a business borrows money against its accounts receivable by selling its invoices at a discount to a finance provider.
The company used invoice discounting to improve its cash flow without waiting for customers to pay.
Forms
- invoice discounting
Related terms
See also
Commentary
Invoice discounting differs from factoring primarily in that the business retains control of the sales ledger and customer collection.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.