Financial Services Glossary
The 'language of finance' can be daunting. We therefore thought that a simple explanation of many of the terms might be helpful, so here goes!
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A financial transaction that allows a company to draw down funds against its sales invoices before the customers have actually paid. This is acheived by the company borrowing a percentage (usually 75 - 80%) of its whole sales ledger from a finance company. Invoice discounting services are available in a variety of forms, but in most cases the finance company will have recourse to the seller if the customer does not pay within a specified period.