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Common Invoice Finance Myths

Invoice finance is one of the most trusted finance options for over 40,000 companies in the UK, however some companies avoid using this funding option due to a lack of understanding. In the past, invoice finance was used as a last resort option for some companies that were in trouble, but this is no longer the case as invoice finance now helps businesses that are looking to grow. Here are some common myths about invoice finance and how they’re not true.


Customers don’t like it

A lot of large firms in the UK have no issues with suppliers that use invoice finance. If you are worried about disclosure, then some funding can be provided confidentially, and your customers will have no idea that you are using invoice finance.


It’s a sign of trouble

A lot of companies that use invoice finance now, use it in a positive way to boost their working capital and growing their business, so the stigma that once surround invoice finance has now gone. Over 40,000 UK businesses now know the benefits of this form of funding and how flexible it is.


You can’t cancel it

It’s possible to have a flexible solution where you can finance one-off invoices on an as needed basis, this is called selective invoice finance. From choosing individual invoices, cash flow can be managed better, and companies don’t have to sign up for a facility that needs to know all about their debts.


It takes away control

It isn’t necessary to allow funders to manage their collections process. You can still keep in control of the invoice process, companies can still raise cash flow finance, manage collections and maintain working relationships.


It’s expensive

Invoice finance costs or than traditional funding, through a bank overdraft or loan, but it has better cash flow benefits. You get more than just funding; you also get a flexible solution that includes credit control expertise and bad debt protection. It is the only funding option that is available that will generate the funds to support growth.


Added: 14 Mar 2019 11:05

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