What Is Invoice Discounting & How It Works? - Mynd Fintech

 


Invoice Discounting is a financial practice adopted by businesses to support their working capital requirements in a hassle-free and cost-effective manner. Invoice discounting (also known as invoice factoring) is the procedure of selling your unpaid invoices, generally within 30 days, to an invoice financing company who then pays you immediately against the outstanding cash value of your debtors’ payments. The money you receive is based on the discounted rate and finance charges depending upon which product and provider you use.

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