Can ID Solve Your Cashflow Worries?

The timing of cashflow can be all important in making or breaking a business!

Ideally, money made from trading would come in before, for example, a major bill had to be paid or tax was due. It would be ideal, say, if the money you have earned was paid before your staff need to be paid.

As a business owner, you always have to have one eye on whether or not you have a shortfall of funds - the old adage 'sales is vanity, profit is sanity, but cash is reality' certainly comes to mind! If you have a shortfall, it is known as a cashflow gap (see our comprehensive Invoice Discounting glossary for more definitions).

A cashflow gap can widen around the end of the month, especially when wages need to be paid, whilst invoices issued to debtors from the same period may not be paid into the business for 30, 60 or even 90 days.

A cashflow gap could also increase due to:

  • Suppliers tightening credit terms
  • Customers going bankrupt
  • Insufficient bank facilities available
  • Poor credit control
  • Not forecasting ahead

So, as long as your business is offering credit terms, the potential for a cashflow gap to appear will always be there. But there are ways to plug a cashflow gap.

Invoice Discounting is one way that can help ensure a fluid cashflow within your business.

Of course it can!

Invoice Discounting is an increasingly popular alternative to factoring, which should be considered by companies that already have an experienced credit management team:

  • We give you cash against your invoices immediately. This could be up to 90% of the value of your invoices, released upfront to your business
  • You remain in control of the sales ledger and the collections
  • Payment will be made by you or your customers into a trust account we set up


Types of ID

Invoice Discounting can be disclosed or confidential, also known as Disclosed Invoice Discounting (DID) or Confidential Invoice Discounting (CID).

With DID, your customers are made aware of our involvement, usually through a 'notice of assignment' which is printed on copies of all invoices. All payments are made addressed to Skipton Business Finance. With CID, customers have no awareness of our involvement and you continue to invoice and collect payments into a trust account.

What are the other benefits of ID?

  • The facility keeps pace with the growth of a business
  • If you already have a well established credit management team, then you can still utilise this strength whilst benefiting from the extra cash released from invoice discounting
  • You can receive funds within 24 hours
  • It is very well priced against traditional business loans and overdrafts
  • Both small businesses and large businesses are eligible for Invoice Discounting
  • It allows you know when funds are going into your bank account, rather than the uncertainty of when invoices will be paid
  • You don’t have to secure a loan against any other assets meaning more flexibility for your business
  • At Skipton Business Finance, you will have a dedicated Relationship Manager throughout the lifetime of your facility. That means no automated telephone services and no call centres. Just the direct contact details of a highly-trained and efficient Relationship Manager!

Contact us today & get a FREE quote!

Backed by Skipton Building Society, one of the largest financial establishments in the UK, we share the same ethos in that our fundamental values is that we create partnerships with our clients, rather than see them as another client number. 

If you would like a no-obligation FREE quote, please get in touch by ringing us on 0800 0854150 (call 0330 1232437 if ringing from a mobile).

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Or why not utilise the handy form on the right and we'll call you back!

 Find out more

At Skipton Business Finance, we offer the following types of Invoice Finance:

4 reasons to choose us:

  • As a business owner, do you worry about cashflow?
  • What types of cashflow problems exist?
  • Can Invoice Discounting work better than bank facilities?
  • We ask if it can really help and explore the benefits