Invoice discounting
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Cash flow challenge: I want to unlock cash from my invoices without my customers knowing
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Perfect for: Established B2B businesses with internal credit control teams, looking to improve cash flow while maintaining control of their customer relationships
Novuna helps you compare trusted invoice discounting providers, understand the terms, and apply with confidence.
Compare invoice discounting quotes compiled by the multi-award winning Novuna Business Cash Flow
Get paid in 24 hours if needed
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Rates from 0.5%
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Funds in your account in 24 hours
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Get up to 100% of invoice value
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Expert help to guide you through the process
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Confidentiality with your customers
Fast decisions. Flexible options. Funding over £2bn to more than 1,000 SMEs every year.
Call us on 020 4632 1977 to speak to a real cash flow expert. We’ll help you apply for the right type of finance and make sure you get a great deal for your business.
Or click 'Boost your cash flow' below to compare providers.
Related debt financing options
Pages in this SectionWhat is invoice discounting?
Invoice discounting is a type of finance that lets you borrow against the value of your unpaid invoices, giving you access to working capital without waiting for your customers to pay. You'll typically receive up to 90% of an invoice's value upfront, with the balance released minus an agreed fee, once your customer settles.
The key difference from invoice factoring is that you stay in charge of your own sales ledger and credit control, and the facility is usually confidential, so your customers continue to deal with you exactly as they do now. That makes it a popular choice for established businesses that have their own finance function and want funding to stay behind the scenes.
The advantages of invoice discounting
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You unlock up to 90% of the value of your unpaid invoices as soon as you raise them, so you have working capital to draw on rather than waiting weeks or months for your customers to pay
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Because the arrangement is confidential, your customers needn't know that finance is in place, and you carry on managing those relationships exactly as you do today
- You stay in control of your own credit control and collections, which suits businesses that already have a capable finance function and prefer to keep customer contact in-house
Is invoice discounting right for your business?
It's often a strong fit if:
- You have your own credit control function and are comfortable continuing to manage collections
- You'd prefer the arrangement to stay confidential, so your customers deal with you as usual
- You invoice other businesses (B2B) on 30, 60 or 90-day terms and want faster access to that cash
It may not be the right fit if:
- You'd rather outsource credit control and payment chasing - invoice factoring may suit you better
- You're a very new business without a trading history or a dedicated finance function
- You only want to fund a handful of selected invoices - consider selective invoice finance
How much does invoice discounting cost?
- A service (or facility) fee - a percentage of your annual turnover for running the facility
- A discount fee - charged only on the funds you actually draw, similar to interest, and usually set as a margin over the Bank of England base rate
An illustrative is example below, based on your sales ledger, not a single invoice:
| Your situation | What it could look like |
| Sales ledger financed | £200,000 outstanding across your customers |
| Working capital available (up to 90%) | Up to £180,000 to draw as and when you need it |
| Service / facility fee (illustrative, ~0.3–0.7% of turnover) |
Typically lower than a comparable factoring facility |
What is the difference between discounting and invoice factoring?
The key difference is who chases payment. With invoice discounting, you chase and the arrangement stays confidential. With invoice factoring, the lender takes over collections which means your customers know.
Most UK businesses with £500k+ turnover and a working credit control team choose discounting; smaller or less mature businesses often choose factoring for the back-office support.
How invoice discounting works in four steps:
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You issue an invoice to your customer on your usual payment terms.
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Your discounting provider advances up to 90% of the invoice value within 24 hours.
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You manage collections yourself - your customer pays you, exactly as before. They don't know a finance arrangement is in place.
- You receive the balance (minus the agreed fee) once the customer pays.
How it works with Novuna Business Cash Flow
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Tell us what you need. Share your turnover, sector and typical invoice values.
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We compare your options by pulling quotes from invoice discounting expert providers.
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Choose the right facility. Compare advance rates, fees, contracts and minimum turnover side by side.
- Receive funding fast. Most facilities go live within 24-72 hours of underwriting.
Fast decisions. Flexible options. Funding over £2bn to more than 1,000 SMEs every year.
Is invoice discounting right for you?
You're a B2B business turning over £500k+ a year
Invoice discounting is typically available to established businesses, not startups. If you turn over less than £500k, invoice factoring or selective invoice finance is usually a better starting point.
You have your own credit control team
You'll keep managing customer collections, so you already have the people and process in place.
You want funding to stay confidential
Invoice discounting is typically confidential, meaning customers aren't aware you're using external financing.
If that sounds like your business, we’ll help you compare lenders and get funded fast.
Novuna can support businesses with a range of late payment challenges
What is your funding challenge?
I want the lender to manage collections on my behalf
I only want to fund selected invoices
I want suppliers to be paid upfront so I can extend my payment terms
I want expert help managing late payments
How we help
How Novuna helps businesses access funding fast
Tell us what you need
Start with a simple form or call - tell us your business challenge.
We compare your options
We compare multiple providers to get you a great deal.
Choose the right type of funding
Access a range of short-term funding options including loans, advances, and invoice finance.
Apply with expert support
Get help applying - with a real expert on hand throughout.
Get clear, transparent terms
No jargon, no surprises - just honest advice with no hidden fees.
Receive funding fast
Get access to finance quickly so you can focus on your business.
Why take action now
Don’t let unpaid invoices limit your business
Fast access to finance can protect jobs, projects, and growth
The sooner you act, the better your options
We help you avoid high-cost lending by comparing the right products upfront
Why choose Novuna Business Cash Flow?
Why businesses trust us for invoice discounting
We're highly rated by our existing customers
"The communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll.'
More reviewsWe're a multi-award winning business cash flow specialist
Innovation in the SME Sector 2026
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What invoice discounting looks like in your sector
Get advice tailored to the challenges in your industry
Who can use invoice discounting?
Invoice discounting is best suited to established B2B companies that issue invoices with credit terms and manage their own credit control efficiently. It’s particularly beneficial for:
- Businesses with regular monthly invoicing and reliable customers.
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Firms that want quick access to working capital without external interference.
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Companies seeking to keep financing arrangements confidential.
What are the main benefits of invoice discounting?
- Confidential funding: Customers continue to pay you directly as the lender remains behind the scenes.
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Flexible cash flow: You can release capital tied up in unpaid invoices whenever needed.
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Scalable finance: As your invoiced sales grow, your funding limit automatically increases.
- No new debt: It’s not a traditional loan, you’re simply unlocking money that’s already owed to you.
How quickly can I access funds?
Funds are typically available in your account within 24 hours of issuing an invoice once your facility is live. Setting up a new facility usually takes 1–4 weeks depending on the lender and your due diligence requirements.
How much does invoice discounting cost in the UK?
UK invoice discounting fees are typically 0.2%-0.5% of turnover for the service fee, plus a discount fee (interest) on the advance which is usually 1.5%–3% above base rate. Compared to invoice factoring (typically 0.75%–2.5% of turnover), discounting is cheaper because you handle credit control. Exact rates depend on your turnover, sector, debtor quality and contract length.
Do I need a minimum turnover for invoice discounting?
Most UK invoice discounting providers require a minimum annual turnover of around £500,000, though some specialists go lower. If your turnover is below that, invoice factoring or selective invoice finance is usually a better starting point.
