Invoice Discounting vs Factoring: What Nigerian SMEs Should Know

## Invoice Discounting vs Factoring Many Nigerian business owners use these terms interchangeably, but they are different financial products. ### Invoice Discounting - You retain control of your sales ledger and collections. - Your customer may not know about the financing (confidential). - You collect payments from customers and repay the funder. ### Invoice Factoring - You sell the invoice to the factoring company. - The factor handles collections and may contact your customers. - Your customer knows about the arrangement (disclosed). ## Which is Better for Nigerian SMEs? Choose invoice discounting if you have strong corporate client relationships and prefer confidentiality. Choose factoring if you lack collection infrastructure. ## FedaCash: Embedded Invoice Financing FedaCash offers direct balance-sheet funding. You control collections, get 70-90% advance in 24-48 hours, no collateral required. --- Ready to start? Download the FedaCash App from Google Play to begin invoice financing today.