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From Longman Business Dictionary
Related topics: Trade
discountingdis‧count‧ing /ˈdɪsˌkaʊntɪŋ/ noun [uncountable]FINANCE1 (also invoice discounting)COMMERCE when a financial institution lends a business an amount of money equal to that owed to the business by its suppliers, in return for a percentage. This is good for the business because it gets the money immediately, improving its CASH FLOW. Discounting is a form of finance that can be cheaper than bank loans or OVERDRAFTsFor invoice discounting, fees are typically between 0.2% and 0.5% of the value of invoices.If you have a lot of money tied up in your sales ledger in unpaid bills, invoice discounting is a way to release this money for you.2the activity of buying a bill of exchange for less than the amount that will be paid on it on a fixed date in the future
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