Invoice discounting: Difference between revisions
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imported>Doug Williamson (Clarify that the supplier will normally collect the invoice. Source: ACMF October 2016 p145.) |
imported>Doug Williamson m (Add category.) |
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* [[Factoring]] | * [[Factoring]] | ||
* [[Supply chain finance]] | * [[Supply chain finance]] | ||
[[Category:Manage_risks]] | |||
[[Category:Liquidity_management]] | |||
[[Category:Trade_finance]] | |||
Revision as of 12:40, 29 October 2020
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'.
