Invoice Discounting is a type of Invoice Finance that provides a business with enough cash to fund its working capital requirements. Disclosed Invoice Discounting works in much the same way as a confidential facility, however the funder's involvement is disclosed to clients. While invoices will refer to the fact that they have been assigned to an Invoice Finance provider, customers pay the Invoice Finance provider directly.
The improved cash flow that Invoice Discounting offers can enable your business to buy more competitively from your suppliers by obtaining early payment discounts. Invoice Discounting funding can grow in line with a business’s turnover; the more it invoices, the more funding is available. Most Invoice Discounting facilities are kept confidential from a business’s customers. An Invoice Discounting facility can either operate on a Confidential or a Disclosed basis.
The current late payment culture can cause lots of misery and pain as businesses face an agonizing wait to get paid for work completed weeks or months ago. With a Disclosed Invoice Discounting solution from Skipton Business Finance, we will advance you up to an agreed percentage of the value of your unpaid invoices. You then keep full control of your sales ledger and credit control, with your clients being fully aware of our involvement.
How does a Disclosed Invoice Discounting facility work?
Disclosed Invoice Discounting works to advance cash against your unpaid invoices and put the cash you've earned straight back into the business, whilst allowing your credit control function to act as normal.
With this solution, there is a disclosure notice on all the invoices you supply to your customer which informs your customers of our involvement in the process.
The improved cash flow that Invoice Discounting offers can enable a business to buy more competitively from your suppliers by obtaining early payment discounts. Disclosed Invoice Discounting can grow in line with a business’s turnover; the more it invoices, the more funding is available.
What makes a Disclosed Invoice Discounting facility different?
Unlike banks, we don’t base decisions on historic balance sheets and your finance solution will therefore grow with your business - meaning you don’t have to keep going back to the bank asking for more funding and going through the application process over and over. Skipton Business Finance is a people first finance provider, businesses often choose to stay with us for their financial needs as and when their demands change. This is because we put you first and take the time to really understand your business’s needs. Therefore, our client relationships often span years and your dedicated Account Manager knows your business front to back.
If you are looking for a financial solution for your business but unsure which would be the most suitable, speak to our team today by calling 0800 085 4150 or completing this short enquiry form.