For suppliers
Invoice discounting
Early payment against an approved invoice for goods already delivered. The supplier chooses which invoices and when.
The facts
- Who owes the money
- You, the supplier: full recourse. The anchor pays in the normal flow; if it does not pay in full, or the collectible amount is reduced, you repurchase the invoice or pay the shortfall on demand.
- Who decides
- Your financier, on each approved invoice you choose to offer.
- What you need
- An invoice your anchor has approved.
- How the cost is shown
- A discount on the invoice. You are paid the invoice value less the discount, and you see the discount in full before you accept, on each invoice you choose.
- Who can offer it
- It depends on your program.
How it works
Who owes the money: Under Invoice discounting, you carry the obligation, the financing is with full recourse: if your anchor does not pay, or you do not deliver, you must repay. What the arrangement is in your program is set out in your financier’s documentation.
Step 1 of 6Supplier: delivers the goods.
- Goods
- A document
- Money
Read the steps
- Supplier: delivers the goods.
- Supplier: invoices the anchor.
- Anchor: approves the invoice.
- Supplier: chooses to offer that invoice for early payment, and assigns it to the financier.
- Financier: pays the invoice value less a discount, before the due date.
- Anchor: pays the invoice in the normal flow on the due date, and that payment is routed to the financier.
More about Invoice discounting
Beside the other products for suppliers
Under Reverse factoring, your anchor carries the obligation and settles with the financier. You are not borrowing against your own balance sheet. Under Purchase order financing and Invoice discounting, you carry the obligation, the financing is with full recourse: if your anchor does not pay, or you do not deliver, you must repay. What the arrangement is in your program is set out in your financier’s documentation.
What the documented framework says
Each statement is taken from the platform’s documented agreements and names the clause it rests on. Your own program’s documents govern, and none of this is legal advice.
Invoice discounting is with full recourse: if your anchor does not pay in full, or the collectible amount is reduced, you buy the invoice back or pay the shortfall on demand.
Supplier Master Participation Agreement, clause 3.1
Your anchor’s letter of undertaking routes the payment. It is not a guarantee, and it does not move the obligation to repay off you.
Anchor Master Participation Agreement, clause 3.11
Under Purchase order financing and Invoice discounting, you carry the obligation: the financing is with full recourse: if your anchor does not pay, or you do not deliver, you must repay.
Supplier Master Participation Agreement, clause 5.3
Before every trade you see the product, the amount payable to you, every deduction: financier discount, platform fee, VAT, and the effective annualized cost.
Supplier Master Participation Agreement, clause 1.2
Who can offer it, and how this page was checked
Which financiers offer this with your anchor is confirmed program by program. Ask us and we will tell you who offers it for yours.
This description has not yet been checked against the program documentation for this page. Where it and your financier’s agreement differ, the agreement governs.