The Advantages and Disadvantages of Invoice Discounting

24th June 2024

What is Invoice Discounting?

Invoice Discounting.png One of the main advantages of Invoice Discounting is obtaining sufficient working capital to grow, whilst maintaining full control over the collection of your payments, your business, and your worries. This Invoice Finance facility gives you access to up to 90% of the invoice value the day you raise it. At Skipton Business Finance we keep things simple for your peace of mind.

 

The advantages and disadvantages of Invoice Discounting

Invoice Discounting has been widely recognized as a valuable financing tool for many businesses, offering benefits such as improved cashflow, working capital management, and flexibility. Below we will share some of the advantages and disadvantages of Invoice Discounting. Our goal is to help you feel informed about our Invoice Finance solutions and what we can offer you.

 

The advantages of Invoice Discounting: 

- Improve cashflow: The most important benefit of Invoice Discounting is that it provides you with immediate access to working capital and ensures that your business has the funds needed to cover operational expenses, invest in growth, or seize new opportunities. 

- Customer confidentiality: Invoice Discounting allows you to improve your cashflow and working capital management confidentially, without risking damage to your customer relationships or reputation. This may not be possible with other forms of financing.

- Dedicated relationship manager: Our mission is to help you and be by your side every step of the way. You’ll get the customised Invoice Finance solution your business needs. With a client satisfaction rating of 98%, you know Skipton Business Finance is a name you can trust.

 

Factors to consider when deciding whether Invoice Discounting is right for you: 

- Eligibility requirements: Whilst we try to help everyone and operate on a case-by-case basis, Invoice Discounting is subject to approval and not guaranteed for all applicants. 

- Contract length: With a common minimum contract length of 12 months, the timeframe might not be suitable for all clients. A shorter contract may be more appropriate, depending on your business needs.

 

At Skipton Business Finance we are to listen to your needs and help you make the right decision for your business. Get in touch with us today to explore how our Invoice Discounting solution can help you with financial flexibility and sustainable growth.