INVOICE FINANCING
Invoice Financing is the means of optimising cashflow. Rather than having money
tied up in liquid assets such as invoices. Invoice Financing allows you to receive
up to 90% of the value of your invoices within 24 hours of producing them. The remainder
is then paid when the invoices are paid, less the service fee.
The advantages of invoice financing is that your business receives the majority
of the value invoices within 24 hours, irrespective of whether your customers pay
on time or late.
It is broken down into 2 products:
Factoring
Factoring
is a full service solution which provides the customer with paying invoices up front,
but also administration with managing the sales ledger. Non-Recourse factoring also
provides you with a bad-debt solution where the financing company will assist you
with the chasing of debts. Recourse factoring is the more popular solution, where
the customer provides the funding should their customer fail to honour their side
of the deal.
Invoice Discounting
Invoice Discounting is the solution where you retain more control of your
sales ledger. A confidential arrangement is where the company retains total control
of the sales ledger, with the facility being completely confidential and your customers
are unaware that you use a financing company.
Skipton Business Finance can advance up to 90% of your invoices using either of
the invoice financing solutions. We also provide the Skipton Link online facility
that allows you to transfer funds direct into your bank account instantaneously.
With any of our solutions, we can arrange for the facility to be set up within 5
working days with no need to change bank accounts.