Invoice Discounting vs Factoring: Which Fits Your Business?
This filter answers one narrower question than our full factoring vs discounting guide: given your turnover, whether you want your customers to know you use finance, and whether you already run in-house credit control, which product is the more likely starting point for your quotes. It does not check eligibility, credit history or acceptance odds, only which product shape suits your situation.
Suggested starting point
Invoice Factoring
Why these 3 questions
Confidential invoice discounting thresholds vary by provider (HSBC, for example, publishes a £1m minimum turnover for invoice discounting), because providers need to see an established, reliable credit control process before they'll let you keep managing collections yourself while they fund against your ledger. Below that, or without your own credit control team, providers more commonly offer factoring, where they manage collections for you, which is why your customers may become aware you use finance.
This is a starting-point suggestion, not an eligibility result. Read the full comparison for how the two products differ on cost and control, or see our confidential invoice discounting guide for what "established credit control" providers look for.