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.

What is Invoice Discounting?

Invoice Discounting is a form of Invoice Finance which immediately releases up to 90% of funds tied up in your unpaid invoices.

It is the umbrella term for many forms of Invoice Discounting such as Confidential Invoice Discounting, Disclosed Invoice Discounting and Recourse Invoice Discounting.

How does it work?

With an award-winning Invoice Discounting solution from Skipton Business Finance, we'll release up to 90% of the value of your invoices whilst you retain full control of the credit management. This allows you to keep control of your sales ledger and to manage the credit control function of your business.

The remaining 10% will also be made available when your customers pay, less our fees.

If the internal operation is robust enough and creates solid, tangible invoices which are easily collected with little dispute, we are less concerned with historic balance sheet performance and more about the business moving forward.

What we can offer you

We have structured Confidential Invoice Discounting deals for SMEs with turnovers as small as £100k purely because the client has provable systems and an excellent accounting function.

What are the benefits of Invoice Discounting?

If you're an SME, increased cashflow is, without a doubt, the biggest benefit of Invoice Discounting and, indeed, any Invoice Finance solution.

With access to funds up-front, you will have the freedom to make payments on regular bills such as tax, salaries or rent, as well as added confidence to deal with unexpected bills if they occur.

The flexible service we provide will also ensure that your Invoice Discounting solution grows with your business, therefore there will be no need to increase or re-negotiate as you would with your bank overdraft or other borrowings. As your business grows, so does the Invoice Discounting solution!

This is exactly what we mean when we say that Invoice Discounting can prove much more flexible than a traditional bank overdraft and can normally generate twice as much funding.

Partnership Approach

Through our partnership approach to business we are happy to advance the cash and let the client collect the invoices. This allows the client to preserve their close customer relationship whilst giving access to flexible funding which will then ultimately grow in line with the business.

Contact us today & get a FREE quote!

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).

You can also email us at info@skiptonbf.co.uk.        

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:

  • Your business is NEVER too small for Confidential Invoice Discounting
  • We have structured Confidential Invoice Discounting for businesses with £100k turnovers
  • Confidential Invoice Discounting - Release up to 90% of your sales ledger
  • Skipton Business Finance is part of the Skipton Building Society Group