Confidential Invoice Discounting
Confidential invoice discounting is a financing facility in which a business receives a loan that is secured against its outstanding receivables. Unlike traditional invoice discounting, the business’s customers are not notified of a third party lender’s involvement with the company.
With traditional invoice discounting, the third party lender would be responsible for collecting invoice payments from the borrower’s customers; however, with confidential invoice discounting, the borrower is still responsible for collecting payment, keeping the involvement of the third party to a minimum.
