The operation and risk profile of factoring and confidential invoice discounting are described. Their vulnerability to fraud and the importance of audit are highlighted. When the trade financier is to be repaid from the prepayment generated by an invoice financier, the availability, sufficiency, and mechanism for receipt of monies need to be assessed. The risks are highlighted and the options for the payment of prepayment monies to the trade financier described. The methods of submitting a claim for prepayment, creation of a retention reserve, provision of drawing rights, direct payment by the invoice financier, and drawdown and repayment by the client are discussed together with the relative risks and merits of each. The alternative of carving out selected debtors via a deed of release from the invoice financier’s security pool of debts is explained.