Invoice Discounting for SMEs
Traditionally, Confidential Invoice Discounting has only been available to larger businesses and most mainstream and independent Invoice Finance providers have high entry requirements to obtain this premium type of funding.
SMEs usually only have access to Invoice Factoring, which includes full credit-management which many have no need for.
Strict criteria such as a minimum turnover of £2 million, profits over 3 years or minimum net worth of £50k are used to exclude the smaller business from eligibility, whereas in reality the nature of the invoices, which are provided as security, are as robust as any multi-million pound business.
Pragmatic approach
Here at Skipton Business Finance, we have a pragmatic approach. We are focused on what solution best suits the client’s needs and, provided we have the confidence that they can run what should be a low risk facility, we are happy regardless of the size of the business.
By the end of 2015, there were 18,894 businesses with Invoice Factoring facilities in the UK, making it the most popular Invoice Finance facility in the country.