INVOICE DISCOUNTING

Invoice discounting is an alternative to factoring in that your business retains control over the administration of your sales ledger. Factoring outsources the administration in invoicing, whereas you keep control of invoicing and the administration of your sales ledger.

The most popular offering is confidential invoice discounting. This is where you retain control of your sales ledger and the facility is totally confidential - your customers are unaware that you use a factoring company and don't know that we are involved. You retain all contact with your debtors and your relationship with them remains unaffected. You simply advise us of the value of your work invoiced on a daily or weekly basis.

One of the main advantages of invoice discounting are the cost savings to be made over factoring. Service charges are usually much lower, as the invoicing still remains your responsibility. Because there is less administration on the financing company means a cost saving, usually a fixed monthly fee and a percentage of the value invoiced.

Invoice Discounting provides a cost-effective way for profitable businesses to improve their cashflow, without resorting to overdraft facilities and loans. The value of the invoices are received by the organisation much earlier than in normal credit terms.

The overall aims of the Skipton Business Finance facility is to release working capital from the funds that are tied up in your unpaid invoices in order to improve your cash flow

Skipton Business Finance will advance up to 90% your invoices that you issue. We will not become involved with the management of your sales ledger and the day to day running of your debtors.

55% of our current clients have an invoice discounting deal. This is a very popular route to improve cash flow into a business.

Unlike many financing companies, Skipton Business Finance do not have specific turnover criteria that must be met to qualify for a facility. Your business simply has to have the administrative capability to collect the ledger in a timely fashion and maintain an accurate and fully up to date sales ledger.