Invoice discounting is a form of asset finance where a business uses its outstanding debtor invoices as security to access a proportion of their value — typically 70–90% — before the customer has actually paid. This accelerates cash flow significantly, reducing the gap between issuing an invoice and receiving cash. Unlike factoring, invoice discounting is usually confidential — customers are unaware their invoices are being funded. It is particularly useful for businesses with long debtor payment cycles or those experiencing growth that is stretching their working capital. A corporate finance advisor can help structure the facility and identify the most competitive providers in the Irish market.
