Invoice discounting: Difference between revisions
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imported>Doug Williamson (Expand.) |
imported>Doug Williamson (Clarify that the supplier will normally collect the invoice. Source: ACMF October 2016 p145.) |
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In this respect it differs from factoring, under which the customer is normally - though not always - made aware of the factoring arrangement. | In this respect it differs from factoring, under which the customer is normally - though not always - made aware of the factoring arrangement. | ||
Under invoice discounting, the supplier will normally collect the invoice. | |||
Revision as of 14:13, 9 February 2017
A form of short term finance secured against trade accounts receivable.
Under invoice discounting, the customer which owes the trade debt need not be informed about the related finance arrangement.
In this respect it differs from factoring, under which the customer is normally - though not always - made aware of the factoring arrangement.
Under invoice discounting, the supplier will normally collect the invoice.
Also known as 'receivables discounting'.
