2 min read
Definition
Confidential invoice discounting is invoice discounting arranged so the business's customers are unaware a financier is involved. The business continues to invoice and collect exactly as before, while borrowing against those invoices behind the scenes.
In plain terms
It preserves the appearance of a self-funded business and protects customer relationships, which is why established firms with strong credit control often prefer it. The lender takes comfort from the quality of the ledger rather than controlling collections.
Why it matters
Confidentiality is the key attraction over factoring, where the customer deals with the factor. See invoice discounting.
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