Confidential invoice discounting

Invoice discounting lets a business borrow against outstanding invoices while maintaining its own sales ledger, so the arrangement stays confidential and flexible. This page explains how the facility works, how it differs from invoice factoring, and the steps involved in arranging it.

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What invoice discounting is

Invoice discounting lets a business borrow against its outstanding invoices while maintaining its own sales ledger. The arrangement is confidential and flexible. It releases cash tied up in invoices, bringing forward money the business has already earned.

Who it suits

Customer profile: businesses whose customers are other businesses, with a well-kept debtor book spread across a range of customers.

Operational fit: a business that wants to manage its own sales ledger and keep the funding arrangement confidential. An asset-light business may also want to discuss funding linked to invoices rather than property.

These are factors to discuss, not a guarantee of eligibility. All finance is subject to status and provider criteria.

Discounting vs factoring

With discounting, your business maintains its own sales ledger confidentially. With factoring, a specialist factor takes over invoice collection and provides an advance. Both are forms of invoice finance within the Trade Finance category. Timescales depend on the lender and the deal.

The comparison is about the way the invoice facility works, not a promise about an advance amount or a price. We start with the business requirement, structure the facility and put the opportunity to the right lenders simultaneously. The umbrella Invoice Finance page explains the two approaches together.

Invoice discounting and invoice factoring compared

Approach	Who deals with your customers	Page
Invoice discounting	Confidential. You manage your own sales ledger.	Invoice discounting
Invoice factoring	Collection is transferred to a specialist factor.	Invoice factoring

Why an independent broker, not your bank

Independent

We have no balance sheet to protect and no product to push. We work independently, matching the requirement to the right lender rather than starting with a product to sell. The conversation starts with what your business needs, not with an existing lending product.

An independent approach means the finance requirement comes first. Trade finance, business lending and capital & liquidity are different funding disciplines, and we tell you which fits before approaching a lender. We present the options clearly and without bias, so the choice remains with your business.

Fast

We take your opportunity to the right lenders simultaneously, creating genuine competition and compressing timelines. This describes how we approach the market, not a promise about an approval or drawdown date. The facility is structured before the opportunity is put to the right lenders.

The purpose of approaching lenders simultaneously is to bring back options that can be reviewed together. We negotiate on your behalf and present those options clearly. Rather than negotiating blind, you can review the offers in the context of the requirement we have already discussed and structured.

Precise

We design the deal before we approach a lender: size, tenor, security and covenants. The structure comes first, so the opportunity we take to market reflects what your business needs. We then match the requirement to the right lender without unnecessary structure or cost.

The starting point is a conversation about your business and what you want to achieve. The product name is only part of that conversation. We identify the right structure and prepare the opportunity properly before going to market, then explain the options clearly before you choose.

How it works

Tell us what you need
Tell us about your business and what you are looking to achieve. The starting point is the requirement rather than a finance product. We take the time to understand your business properly and tell you which funding discipline fits before approaching a lender.
This conversation gives us the context for structuring the facility. We work across trade finance, business lending and capital & liquidity, so the discussion can start with the business need rather than assuming that a particular product is the answer.
We structure your facility
We identify the right structure and prepare your opportunity before approaching lenders. The deal is designed first: size, tenor, security and covenants. We match the requirement to the right lender without unnecessary structure or cost, keeping the business need at the centre of the process.
Once the opportunity has been prepared, we approach the right lenders simultaneously. That creates genuine competition and compresses timelines. We negotiate on your behalf, with the structure of the facility established before the opportunity is taken to market.
Review your offers
We bring back competitive options from lenders, presented clearly and without bias. You choose. The offers are reviewed against the requirement and the structure of the facility, rather than treating every offer as the same product. We tell you which fits before approaching a lender.
Our role is to present the options clearly so you do not negotiate blind. We are an independent broker, not a lender. The choice remains with your business, and the facility remains subject to status and the requirements of the finance provider.
We close it
We manage the process through to drawdown, coordinating lenders, lawyers and paperwork. This is the final step in the same process that began with understanding the business need. Our role continues through the placement of the facility, rather than ending when offers are presented.
Tell us what you need, let us structure the facility, review the offers and choose the option that fits. We then manage the steps through to drawdown. All finance remains subject to status; guarantees and indemnities may be required.

Download product sheet (PDF)

Frequently asked questions

What is invoice discounting?

Borrowing against outstanding invoices while maintaining your own sales ledger. It is confidential and flexible.

Is invoice discounting confidential?

Yes. Because you keep your own sales ledger, invoice discounting is confidential.

How is it different from invoice factoring?

With factoring you transfer invoice collection to a specialist factor and receive an advance; with discounting you keep your own sales ledger. Timescales depend on the lender and the deal.

Is Oku Financial a lender?

No. Oku Financial is a commercial finance broker. We work with a panel of lenders to find funding for UK businesses.

How much can I borrow against invoices?

Invoice discounting typically offers an advance of 75–90% of invoice face value. All figures are indicative and subject to status.

What does invoice discounting cost?

Invoice discounting typically has a discount charge of 1.5–3% over Bank of England base rate and a service fee of 0.2–0.5% of annual turnover. All figures are indicative and subject to status.

Related finance pages

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