Invoice factoring loan4/29/2023 ![]() ![]() Invoice discounting - or ‘recourse financing’ - is a specific type of invoice financing with one key difference. Is Invoice Discounting the Same as Invoice Financing? Businesses of any size can benefit from invoice financing but the service is common in international trade where companies expanding into global markets are cautious about new Buyers that demand deferred payment terms for goods and services. Invoice factoring is incredibly accessible. In this case, Stenn also offers non-payment protection, so Exporter Ltd will not have to refund any money if Importer Ltd doesn’t pay. When Importer Ltd pays the £10 000 (GBP) invoice amount to Stenn, Stenn pays the remaining £1 000 (GBP) to Exporter Ltd, minus a pre-agreed fee. Stenn now owns the invoice, including the responsibility for chasing Importer Ltd for payment. Stenn pays 90% of the invoice value (£9 000 (GBP)) to Exporter Ltd within 48 hours of the relevant signed documents being approved. However, Exporter Ltd needs cash now, so it sells the invoice to an invoice financing company (Stenn).
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