- Working capital for expansion
- Earlier payment of suppliers to obtain valuable discounts
- Management buy-out/buy-ins
Invoice Discounting operates by accelerating the release of cash, which is tied up in the debtors of a company.
A company can use the facility during awkward financial times to keep business cash positive.
Invoice Discounting is also very useful when trade is expanding fast.
The availability of invoice discounting is central to many successful companies in managing cash flow or with ambitions to grow. It can also be used to buy out a business partner or undertake an MBO.
The facility allows access to more funding than might otherwise be available.