Invoice Finance: Our good to know guide

With the introduction of the government-backed loan schemes such as BBLS and CBILS, many business owners may find themselves faced with the idea of alternative lending alongside these schemes. At Skipton Business Finance, we specialise in providing cashflow solutions to UK businesses through our Invoice Finance products. Here we have put together a quick invoice factoring good to know guide.


So what is Invoice Finance?

Invoice Finance is the general term for finance solutions where money is advanced against the amount due from your customers. This funding solution allows businesses the certainty of fluid working capital which can help to improve cashflow, pay employees and suppliers and invest in growth where they may have previously had to wait. Invoice Factoring and Invoice Discounting are two of the most commonly used forms of Invoice Finance, both allowing businesses access to unpaid invoices.


Invoice Factoring

Invoice Factoring is a flexible solution that advances working capital to a business against outstanding invoices. This allows you access to quick invoice factoring of up to 90% of your unpaid invoices without having to wait 30, 60 or even 90 days for your customer to pay you.  

How can it help?

  • An increased and more consistent cashflow allowing the certainty of working capital
  • Invoice Factoring can provide your business with up to three times as much working capital compared to a traditional bank overdraft or bank loan without having to use your house as security against it.  

Invoice Discounting

Invoice Discounting is another form of Invoice Finance which, like Factoring, allows you access your outstanding invoices without having to wait for customers to pay. Whilst maintaining the benefits of Factoring, Invoice Discounting also allows you to manage the credit control process yourself. This solution is perfect for businesses who prefer to take charge of their credit control process and can be suitable for mature businesses who may already have established processes in place. Invoice Discounting allows you to keep control of your sales ledger and to manage the credit control function of your business.  

How can it help?

  • You remain in control of the credit control process and chase your customers for payments.
  • The flexible service we provide will also ensure that your Invoice Discounting solution grows with your business.
  • It is suitable for more established businesses that may already have credit control processes in place.
  • It has the same benefits as Invoice Factoring meaning you get quick access to funds without waiting for customers to pay.
  • You will have a dedicated Relationship Manager who will be there for support.


Invoice Finance and Government-backed schemes

At Skipton Business Finance we have been able to provide a number of businesses with the government-backed schemes designed to support businesses affected by the ongoing pandemic. These schemes are available with us alongside an Invoice Finance facility, such as Invoice Factoring and Invoice Discounting. To find out more information about our involvement with these schemes, please visit out dedicated Coronavirus Business Support Hub.

Find out more about our Invoice Finance solutions here.