What does AER mean?

AER stands for ‘Annual Equivalent Rate’ and is the interest rate for a whole year, assuming that interest payments within the year (monthly in the case of a Tide Instant Saver) remain in the account and contribute to future interest payments. Simply put, AER is the interest rate including compounding. AER makes it easier to compare different savings accounts on the market and understand which one might be the best fit for your business.

Invoice discounting is structured like a loan, with interest payable plus an administration fee.

Invoice factoring charges are known as a ‘factor rate’, which is based on level of risk, volume of invoices, and the time credit is extended for, amongst other factors.