Jurisdiction(s):
United Kingdom

Key definition

Discount definition

What does Discount mean? In receivables finance (factoring and invoice discounting), discount is the funder’s finance charge calculated in a similar way to interest and typically deducted upfront from the purchase price paid for the receivable(s). It compensates the receivables financier for advancing cash before debtor payment and is usually computed for the period from funding to expected or actual collection. This is a market term used in finance documents rather than a statutory definition. Agreements may refer to discount, discount charge or discount rate. It is commonly expressed as an annual percentage over a benchmark rate (for example, Bank of England...

Discounted CFA with LEI: usual rate on success, LEI rate if not?

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Q&As

What is a DCFA?

Most practitioners know the ‘pure’ CFA, commonly referred to as a ‘no win, no fee’ agreement. Working under a pure CFA, the lawyer or legal representative is remunerated only upon a win, as the CFA expressly defines it. If that outcome is not achieved, no fee is payable for the professional work undertaken on the matter. For additional detail, see the subtopic: CFAs and DBAs for further information. A DCFA is often described as a ‘no win, lower fee’ arrangement in contrast to the pure CFA. Under a DCFA, the client agrees to meet the lawyer’s fees in full on success; if the case fails, a reduced fee is payable to the representative.

The role of success fees

Success fees exist to ensure a solicitor’s portfolio of CFA-backed litigation can operate at nil net loss overall. Put differently, the success uplifts on winning matters are designed to meet the base costs that cannot be recovered on losing matters within that portfolio...

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Alex Bagnall

Total Legal Solutions

Alex has worked in legal costs since 2007 and qualified as a Costs Lawyer in 2014. He has served as the Technical Director of a large multi-site firm of costs draftsmen, was the Head of Commercial Litigation Costs at another national firm and was a Senior Associate at a firm of solicitors which specialised in costs litigation. He is currently the Technical Manager at Total Legal Solutions.Alex's practice consists of complex, technical and high-value claims for costs. He appears regularly as an advocate in Courts throughout the country and has acted as an advocate in Supreme Court assessments on a number of occasions. His extensive experience includes conducting costs appeals in the Court of Appeal and the Supreme Court, costs of arbitration (including challenges to arbitrators' fees), costs disputes between solicitors and their clients and those between professional Trustees and...

Web page updated on 27/05/2026

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