Innovations in invoice discounting has made it an attractive and viable option for many businesses.
Article by Barry McCall. Many companies have negative perceptions of invoice discounting, seeing it as expensive, administratively cumbersome and requiring disclosure to their clients. While these arguments may have been levied against the industry in the past, it has certainly come a long way in recent years. It is now largely electronically driven, with little paperwork in the system; debtors remain unaware of the facility operating as they continue to have their normal working relationship with their customer. “In the context of cost, there are two elements,” says Sean O'Hanrahan, sales director with Ulster Bank Commercial Services. “The discounting charge, which is broadly similar to, or often lower than, the business overdraft rate and the administration fee, which varies depending on the workload involved.
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