Invoice discounting is similar to factoring finance, but with one key difference: the business retains control of its sales ledger. In invoice discounting, a business sells its invoices to a third party at a discounted rate and uses the funds to improve cash flow. The business is responsible for collecting payment from the customer, and the third party does not have any involvement in the sales process. Invoice discounting can be a flexible financing option for SMEs, as it allows them to raise funds quickly without giving up control of their sales ledger. It also provides them with the opportunity to maintain good customer relations as they are still responsible for collecting payment.