Frequently Asked Questions
See answers to our most common questions. If you still have any further questions, please reach out to us.
What is Skippr?
Skippr helps you not just stay afloat but get ahead
Skippr is an invoice finance platform that provides businesses a simple and flexible line of credit that releases cash from outstanding invoices.
Who is Skippr for?
Small and medium businesses (SMBs) who want to grow
Skippr helps any business that trades with other businesses and has been trading for more than 6 months. Don’t wait for your customers to pay you. Unlock cash in under 24 hours from your outstanding receivables.
How does Skippr Invoice Finance work?
Invoice Finance with Skippr is simple
To start, you connect your accounting software and answer a couple of questions relating to your needs. Using this information we are able to review your business and the customers you work with and provide a no-obligation offer.
An offer confirms how much funding we can provide you based on the amount of eligible outstanding invoices, how much it will cost you and the security required to be held by Skippr.
Once our team has onboardered you, you are ready to draw funding. You can view the available funding live on the Skippr dashboard and request funding in a couple of clicks. We process funding requests immediately and expect to receive your funding in less than 24 hours.
When any customers pay their invoices, they pay into a collections account we have opened in your businesses name. These payments automatically repay the loan balance and interest accrued is calculated and charged.
Important to note – all drawdowns and repayments are automatically reflected in your accounting software, saving your Bookkeeper hours of reconciliation work.
How is Skippr different from other lenders?
At Skippr we pride ourselves on being fair and flexible
Invoice finance is traditionally a clunky and burdensome financial product for a business. We make it easy with:
- Simple and transparent pricing: we charge only two fees and instead of accruing fees against the total value of your receivables, we only charge fees against what you draw.
- Flexible: Pay only for finance when you need it. No minimum monthly fees. No lock-in contract.
- Seamless and smart: Draw finance and reconcile seamlessly online. We push back all finance data straight into your accounting package. No uploading of documents and no manual bookkeeping.
- Free cash flow management: Manage your collections and forecast cash flow for free with Skippr. Always know why you need finance before you actually need it!
- Exceptional customer service: Dedicated and friendly Account Manager to assist with all things financial.
How much does it cost to use Skippr?
Skippr fees are simple, transparent and honest.
You only pay when you access funding and you only pay for what you borrow. We do not charge and fees against total receivables outstanding. We do not charge an application fees or minimum monthly fees.
- Drawdown Fee is a % charged against the amount drawn and taken out of the drawdown amount. Ranges from 0.75% – 2%
- Interest Rate is charged against the daily outstanding loan balance. Ranges from 1 – 2% per 30 days
Loan balance outstanding = $100,000 for 30 days
Drawdown Fee = 1.5%
Interest Rate = 1.2% per 30 days
Drawdown Fee: $100,000 x 1.5% = $1500 upfront
Interest Rate: $100,000 x 1.2% / 30 x 30 days = $1200
Do you want to know how much you’ll pay for finance? Get a no-commitment free offer in 24 hours. Get started here.
Which accounting platforms does Skippr connect to?
We connect to your cloud accounting package to make accessing finance easy
Currently you can connect your accounting file to Skippr if you are using Xero, Quickbooks Online or MYOB Essentials. We endeavour to be connected to MYOB Accountright Live by August 2019.
Let us know who you use so we can get back in touch once we are connected to your accounting platform.
Accessing Finance with Skippr
What is invoice financing?
Invoice finance is also known as invoice discounting, receivables finance debtor finance and factoring.
Invoice financing is a form of short term borrowing that allows a business to unlock working capital tied up in unpaid invoices to improve cash flow, pay employees/suppliers, reinvest in operations and grow.
Your business issues invoices to its customers and those that remain unpaid are considered assets. Invoice financing allows you to draw money against these assets without having to wait for the customer to pay.
Skippr can advance you up to 80% of the total value of invoices outstanding to customers you have selected to fund against. You pay a percentage of the total amount drawn down to receive an immediate injection of cash, repaying the loan as your customers’ payments come in.
Why do businesses use invoice financing?
Invoice financing helps a business accelerate growth
Rather than chasing up or waiting for debtors to pay, which can be a time consuming and tedious job, businesses can use invoice finance to release cash flow from their debtor ledger immediately. These funds can then be used as you feel fit to run and grow the business.
It is quick and easy to apply for funding through Skippr. There is no need to wait for your customers to pay – Skippr gives you control over your cash flow with quick and consistent cash injections.
How do I apply for a loan with Skippr
Apply online for a skippr loan
To apply for finance with Skippr is simple. Firstly open an account by providing some login information and then connect your accounting software.
We will securely pull in your financial information, which typically takes 3-5 minutes, conduct a credit review and be back in touch with an offer or some further questions in less than 24 hours.
Do I qualify for a loan from Skippr?
In order to qualify for a loan with Skippr, you need to demonstrate the following:
- Business has outstanding receivables with other businesses (B2B)
- Your monthly revenue is or is expected to be > $50,000 / month
- You raise invoices against delivered goods or services rendered
- You trade with creditworthy business customers
- The business is unencumbered. No General Securities Agreement (GSA) held by other funders*
- The business is not heavily indebted to other funders
- The business is using Xero, MYOB Essentials or Quickbooks Online
*Other funders can hold a General Securities Agreement (GSA) over a business which entitles them to secure against all assets of the business. Skippr must hold primary security over the receivables ledger so either the GSA needs to be removed by the other funder and we become the primary securing party OR we hold a Deed Of Priority over the receivables ledger only and hold a GSA as a secondary securing party. This means we can work alongside other funders if need be.
If you are unsure if your business qualifies or have any questions, feel free to call us or drop us a message on the website.
Getting an offer from Skippr is free, quick and easy. Click here to get started
How much funding can Skippr provide?
Currently Skippr can provide between $30,000 and $500,000 in funding to a business. This amount is determined by the total value of receivables that are outstanding and approved by Skippr. Typically we provide 80% of the total value of the approved receivables.
Receivables are deemed approved by Skippr, if the debtor is deemed as creditworthy and we are satisfied the invoices will be paid on the agreed terms.
Once you are approved, you will be able to view how much funding you can access in your account.
Higher limits are available for borrowers who build positive track record with Skippr.
How is interest calculated?
Interest is calculated on a daily basis and paid only when an invoice payment is received into the collections account.
The Interest Rate is quoted on a per 30 day basis. To calculate the interest accrued for a loan amount simply use the following formula:
Interest Accrued = Loan amount outstanding x Interest Rate / 30 x No. of Days loan is outstanding.
Loan balance is $100,000 and outstanding for 45 days. Interest Rate is 1.2% per 30 days
Interest Accrued = $100,000 x 1.2% / 30 x 45 = $1800
What security do I need to provide to access finance?
To access finance with Skippr, we typically require a lien or General Securities Agreement (GSA) over your business and Personal Guarantees from the Directors of the business. The GSA enables us to secure against assets of the company, in-particular the receivables.
The Personal Guarantees are a secondary security and used to predominantly to create alignment between parties which mitigates against fraud. If the asset position of the business is strong enough, PGs can be waived if required.
Can I repay my loan early?
Of course! You can make direct payments to the collections account to reduce your outstanding balance and in turn the interest costs.
Do you have to verify invoices?
To provide cash advances against an invoice verification is sometimes required.
To ensure we are advancing funding from invoices that are going to be paid by your customers, we sometimes require you to get the customer to confirm the invoices have been received and will be paid at the agreed date. Not only does this provide more surety for you and your cash flow, but it reduces funding risk substantially so more funds can be provided more quickly and cost effectively.
Verification typically entails you or us sending an email to the customer requesting them to confirm the invoices have been received and will be processed for payment on the agreed date. Seeking this confirmation can also be done by phone (if need be) or relying on a clear paper trail. We only verify a predetermined portion of the receivables ledger.
Important to note – This process can be done on a confidential basis so your customers are not aware you are using Skippr.
I don’t use cloud accounting software. Can I still use Skippr for finance?
Unfortunately no. Our platform requires a live connection to your accounting data so we can provide a more seamless finance experience. If you are not currently using a cloud accounting platform, it is worthwhile moving your business to the cloud so you can benefit from using digital platforms like Skippr and many others to better manage the finances of your business.
Privacy and Security
How do I my data is safe?
In order for Skippr to access your financial data we have partnered with Codat to securely connect your cloud accounting provider. Codat’s services are used by a large number of global financial services businesses and provide secure transmission of your data.
This data is stored on 256-bit encrypted servers that are hosted by our cloud hosting partner – Heroku. These servers are protected by the 2-factor authentication passwords that are managed by the Skippr board.
Your data is never shared with any 3rd parties and is only used to run our proprietary platform.
What does Skippr do with my data?
Skippr uses your financial data to undertake a credit review process and assess how much finance you can access from your outstanding receivables. A big part of this process is understanding your trading history with your clients. We can see so much through the data so if we have any other questions we’ll get in touch.
This data also powers the invoice collection and cash flow forecasting tools on the platform which are free to use.
Skippr & Xero
How do I connect Skippr to Xero?
- Click “Get An Offer” to start the application process with Skippr.
- Tell us more about your company and create an account
- To Connect your Xero account you will be redirected to our API partner, Codat, who will securely connect your file once you have provided your Xero credentials and authorised the connection.
- You will then be redirected to the Skippr dashboard. We will be back in touch soon after with an offer.
How do I disconnect my Xero account from Skippr?
You can disconnect your Xero account by going to the Account Setting page and clicking “Disconnect”. This will sever the connection between your accounting software and Skippr.
Important to note – you are forbidden to disconnect your account if you have funding outstanding with Skippr. This is a condition of using Skippr for finance.
Why does Skippr need to connect to my Xero Account?
Skippr uses your financial data to undertake a credit review process. We assess how much finance you can access from your outstanding receivables. A big part of this process is understanding your trading history with your clients. We can see so much through the data but if we have other questions we’ll get in touch.
This data also powers the invoice collection and cash flow forecasting tools on the platform which are free to use.
Does Skippr push data back into Xero?
Yes! When you use Skippr for finance, we push data back relating to the drawdown and repayment of a loan. Your loan account under Current Liabilities will be updated with the live loan balance. Drawdown fees and interest charged will be posted to your Interest Fees and Charges account on the Income Statement.
To make reconciliation easy you can connect the collection account to your accounting software so when payments arrive you can reconcile to invoices immediately.