Criteria for a Discounting Facility
Invoice discounting has more stringent criteria than invoice factoring. That said in order to qualify for an invoice discounting facility your business will need to meet 3 basic criteria:
- Your business must sell to other businesses. Invoice discounting companies will not finance invoices raised to private individuals.
- You must be selling to your customers on credit terms.
- Invoices must be raised in arrears of delivery of your product or service.
It is important to remember that each invoice discounting company has it’s own specific criteria and own specific capabilities.
If for whatever reason you do no qualify for an invoice discounting facility, but you do meet the 3 basic criteria described above, then an invoice factoring facility could be structured that could also meet your needs.
