5 Tech Trends To Help SMEs Secure Invoice Discounting Services

Share this:

Invoice discounting facilities are a useful financial solution for small and medium-sized enterprises (SMEs) looking to improve their cash flow. By selling unpaid invoices to a loan provider at a discount, SMEs can access much-needed cash quickly, enabling them to fund their day-to-day operations, invest in growth opportunities, and manage unexpected expenses.

However, obtaining approval for invoice discounting facilities can be a challenge, especially for SMEs. Loan providers often require proof of the SME's ability to manage their finances effectively, as well as evidence of their creditworthiness. This problem is compounded by the obstacles SMEs often face such as a lack of collateral, limited credit history, and tight cash flow, which can make it difficult to secure approval for invoice discounting.

Benefits of adopting new technology before applying for Invoice Discounting

Adapting to new and future technology trends can help SMEs overcome the above challenges and increase their chances of securing approval for invoice discounting services. By leveraging the latest technology trends, SMEs can improve their financial visibility, enhance their financial performance, streamline financial operations, and demonstrate their ability to manage their finances effectively to loan providers.

Below, we explore five of the best emerging and established technology trends so you can adopt new technologies or optimise your existing tools more easily.

Cloud Based Accounting Software for Invoice Discounting

1. Cloud-based accounting software

Cloud-based accounting software such as QuickBooks, Xero, and Zoho Books have become increasingly popular among SMEs, enabling them to manage their financial records more efficiently. For example, features like automatic bank feeds, online invoicing, and expense tracking can help SMEs maintain accurate and up-to-date financial records. 

However, many SMEs do not fully utilise the features that these software solutions offer. The reporting functionalities that enable businesses to customise reports and generate them regularly are often overlooked. Inventory management, budgeting and time tracking are also easily managed if the software is used optimally.

Utilising these capabilities can help SMEs gain insights into their financial performance, identify areas for improvement, and demonstrate their financial stability to lenders. Having accurate financial records can improve the visibility and transparency of SMEs' financial performance, which can help them secure approval for invoice discounting.

Electronic Invoicing For Invoice Discounting

2. Electronic invoicing

Electronic invoicing, or e-invoicing, is the process of creating and sharing invoices electronically. It can significantly reduce the time and costs associated with traditional paper-based invoicing processes. E-invoicing also improves accuracy, increases visibility into the invoice lifecycle, and enables faster payment processing. This can improve cash flow management and enhance SMEs' creditworthiness when seeking invoice discounting facilities. 

Providing a higher degree of control, insight, and data integrity (e-invoices reduce the risk of fraudulent bills), e-invoicing is a tool which all SMEs should be taking advantage of.

Supply Chain Automation For Invoice Discounting

3. Supply Chain Automation

Supply Chain Automation involves using technology to streamline the flow of goods and services through a supply chain. This can include the use of automated inventory management systems, transportation management systems, and other tools that can help businesses manage their supply chains more effectively.

SMEs can begin adopting automation by identifying their supply chain “pain points” and evaluating which processes can be automated to improve efficiency and accuracy. Spend time researching the most appropriate technologies for you; whether it is RPA (robotic process automation), AI (artificial intelligence) or blockchain, start by implementing them gradually. 

Consider partnering with third-party logistics providers or technology vendors to access supply chain automation capabilities and expertise. SMEs need to assess their readiness and capacity for supply chain automation and invest in the necessary resources and training to ensure successful implementation.

This will help them secure invoice discounting services because improving the efficiency of the supply chain helps SMEs demonstrate that they are committed to optimising operations, enhancing visibility, and effectively managing cash flows.

AI For Invoice DiscountingI

4. Artificial intelligence (AI) and machine learning

The growth of Artificial Intelligence (AI) and machine learning in the last 6 months has been significant, but it can prove overwhelming for SMEs to know how to use it effectively. Leveraging AI and machine learning can be particularly helpful for SMEs focused on optimizing their financial performance:

  • Predictive Analytics: This technology can help SMEs analyse their historical financial data to forecast future trends, such as sales or cash flow. By using this technology, SMEs can identify patterns and make data-driven decisions to optimise their financial performance.
  • Natural Language Processing (NLP): This technology enables SMEs to extract valuable insights from unstructured financial data, such as invoices and receipts. By using NLP, SMEs can automate data entry and analysis, enabling them to make faster and more informed decisions.
  • Robotic Process Automation (RPA): This technology automates repetitive financial processes, such as accounts payable and accounts receivable. By using RPA, SMEs can free up valuable time and resources, reducing errors and improving operational efficiency.
  • Chatbots and Virtual Assistants: These AI-powered tools can help SMEs provide better customer service and support by automating responses to common queries and requests. By using chatbots and virtual assistants, SMEs can improve their customer engagement and free up staff to focus on more complex tasks.

These technologies can enable SMEs to analyse their financial data and identify trends and patterns that can be used to improve their financial performance. By using AI and machine learning in this way, SMEs can demonstrate to lenders that they have a solid understanding of their financial performance and are taking proactive steps to improve it.

If you are looking to join a community of professionals that want to be part of the AI revolution, we recommended signing up for the newsletter over at wildtools.ai.

Blockchain For Invoice Discounting

5. Blockchain technology

Blockchain technology is a decentralized digital ledger that records transactions securely and transparently. It was first conceptualized in 2008 and has since grown to become a powerful tool for SMEs to improve their operational efficiency, reduce costs, and enhance their overall business performance. 

  • Supply Chain Management: As discussed above, blockchain can be used to track goods and products as they move through the supply chain, enabling SMEs to monitor the status of their inventory and identify any potential bottlenecks or delays proving an invaluable tool for visibility and control of your goods.
  • Smart Contracts: Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. These contracts can be used by SMEs to automate payment processing, reducing the need for intermediaries, and lowering transaction costs.
  • Fraud Prevention: Blockchain can be used to create a tamper-proof record of financial transactions, making it more difficult for fraudulent activities to go undetected. This can be particularly useful for SMEs that may have limited resources to devote to fraud prevention.
  • Digital Identity Verification: Blockchain technology can be used to verify the identity of customers and suppliers, reducing the risk of fraud, and ensuring that transactions are conducted securely.

Blockchain technology can help SMEs improve the security and transparency of their financial transactions before applying for invoice discounting services. The result will be a more reliable record of their financial transactions to show to potential loan providers.

Are you looking to free up valuable working capital?
Are you ready to raise cash quickly while saving time and labour?
Turn your invoices into cash, today!


The use of technology can greatly benefit SMEs by improving their financial performance, increasing operational efficiency, and reducing costs. By implementing new technologies such as e-invoicing, supply chain automation and AI, SMEs can demonstrate to lenders that they are taking steps to improve their financial standing and are better positioned to secure funding through invoice discounting. 

SMEs who adapt to new and future trends in technology will have a competitive edge, allowing them to stay ahead and grow in a business environment that is continually shaped by technological advancements.

Need help? Let's chat!