How AI will revolutionise the Invoice Finance sector: A future of even faster funding and smarter decisions

28th March 2024

AI (1).jpg At Skipton Business Finance, we are proud that our operating model is industry-leading, meaning that we use what we believe to be the best systems and processes in the industry. However, we are always looking forward and we know that the era of Artificial Intelligence (AI) is just around the corner. 

The Invoice Finance industry, traditionally reliant on manual processes and human expertise, is an industry that is ripe for AI to disrupt. AI is already emerging as a game-changer in our daily lives and is promising to streamline operations, improve risk assessment, and unlock new opportunities for both businesses and financiers. Let's delve into the potential benefits of AI in the Invoice Finance industry.


1. Unleashing efficiency through automation

Whether you are facilitating or administrating an Invoice Finance facility, getting access to working capital often involves considerable manual processes. AI can automate these processes by:

•    Creditworthiness Assessment: AI algorithms could analyse vast amounts of financial data to assess a borrower's creditworthiness quickly and accurately, enabling faster funding decisions.

•    Document Processing: AI-powered tools could also streamline document verification and approval workflows, speeding up the entire process.

•    Data Extraction: When an Invoice Finance facility is operational, AI could potentially then automatically extract key information from uploaded invoices, eliminating manual data entry and reducing errors.


2. Sharper risk management with AI-powered insights

Again, when an Invoice Finance facility is fully operational, AI could significantly enhance risk management by:

•    Fraud Detection: AI could analyse invoice data to identify potentially fraudulent activity, protecting both businesses and financiers.

•    Predictive Analytics: AI algorithms could analyse historical data to predict payment delays and defaults, allowing financiers to make informed decisions about risk exposure.

•    Dynamic Credit Lines: AI could enable dynamic credit lines that adjust based on real-time business performance, providing greater flexibility for businesses.


3. A competitive edge through faster funding and improved customer service

By leveraging AI, Invoice Finance companies could potentially:

•    Reduce Funding Times: Streamlined processes powered by AI could significantly reduce the time it takes for businesses to receive funding after submitting invoices.

•    Enhanced Customer Experience: Freed from mundane tasks, human staff could then focus on providing personalized customer service and building stronger relationships.

•    Offer Tailored Solutions: AI could analyse a business's specific needs and offer customised invoice financing solutions.


The Future of Invoice Finance: A Human-AI Partnership

AI will one day help enable our clients to be more successful by not only providing them with a future of faster transactions and smarter risk management, alongside the necessary working capital to facilitate growth, however our fundamental ethos will always be centred around human interaction. 

While AI offers tremendous potential, it is important to Skipton Business Finance that we see AI as a tool, not a replacement for human expertise. For us, the ideal scenario involves a collaborative approach where AI handles the heavy-lifting of data processing and analysis, while our experienced staff use their judgment and relationship-building skills to make strategic decisions and provide value-added services.