Definition of whole turnover invoice discounting
“Whole turnover invoice discounting is a means of raising finance by selling your whole sales ledger to a third party finance provider who will release up to 90% of the value of each invoice to you immediately.”
Many companies come up against a funding gap occasionally, between the time that they have issued an invoice, and the date that they receive payment from a customer. Sometimes you need to speed up your cash flow cycle to snap up stock, replace equipment or just because you have hit a minor lull in trade.
In this scenario, whole invoice discounting is a good invoice finance solution because it frees up a revolving credit facility of up to 90% of your turnover at any one time.