Invoice discounting

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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'.

See also