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A 5-Slide Guide to Invoice Factoring and Discounting


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There's been a lot of talk about invoice finance in the UK lately. We're here to clear things up, with a 5-slide guide to factoring and discounting - and the difference between the two.

Rangewell is an independent, free-to-use platform that has the UK business finance market mapped. Over 200 lenders and 5,000 products are rated, reviewed, and available through our portal, which expertly provides businesses and their advisers with curated business finance options tailored to their needs.

Published in: Economy & Finance
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A 5-Slide Guide to Invoice Factoring and Discounting

  1. 1. Factoring Discounting + I N V O I C E Y O U R   F I V E - S L I D E   G U I D E A RANGEWELL PRESENTATION
  3. 3. GET YOUR MONEY quickly... With invoice factoring and discounting, businesses receive a cash advance on unpaid invoices from a lender. This means they won't have to wait 30-90 days to get the funds they need.
  4. 4. ...BUT NOT FOR free A lender will typically advance 85-90% of a business's unpaid invoice, and charge a one-time arrangement fee, a monthly fee, and a charge based on the amount of funding that was advanced. This process is the same in both invoice factoring and invoice discounting. RANGEWELL.COM
  5. 5. SO WHAT'S THE difference? RANGEWELL.COM
  6. 6. Invoice factoring means the lending institution is responsible for collecting payment on the invoice. Invoice discounting means that the business will be in charge of collections. RANGEWELL.COM
  7. 7. BE CAREFUL OF bad debt If the business' buyer defaults on the payment, they could be required to pay the debt they owe the lending institution out of their own pocket. Many institutions, however, offer bad debt protection - if the business' buyer doesn't pay, they'll cover some or all of the money lost. RANGEWELL.COM
  8. 8. is the UK's most comprehensive, independent, and in-depth business finance platform. We provide curated finance solutions for businesses and their advisers. For more information, or to sign up to our free-to-use service, visit