Invoice Discounting can often be a difficult facility to source yet many businesses strive for it without considering the alternaitives. Many people feel that the only alternatives are confidential invoice discounting or full factoring where the lender helps collect your invoices and an assignment notice is on each of your invoices.

What are the alternatives? If you are just looking to collect your own invoices and don’t mind disclosure you could look at either a CHOC’s facility (Client Handles Own Collections) or even a Disclosed Invoice Discounting facility. Both offer lenders more comfort in terms of risk as their involvement is disclosed but they offer businesses the control over credit management.

If confidentiality is key some lenders offer confidential factoring. The lender will undertake your credit control they will call up in the name of your business. This offers you the benefit of an outsourced credit control function but with the confidentiality you feel is important.

Finally there is confidential CHOC’s. This offers the benefits of confidential invoice discounting but it offers the lender slightly more comfort. Without getting too technical (and boring) it means the lender is running a mirror ledger at any time meaning their perceived risk is lower.