The truth behind 6 common invoice finance myths


Invoice finance has proved itself as a viable funding option for growing businesses but age-old myths around the topic still exist. Here we dispel six of them.

Myth: It’s a sign of trouble

Reality: The stigma once surrounding invoice finance has gone. Many companies nowadays use it in a positive way to boost working capital, tap into invaluable expertise, benefit from its additional services and grow their business.

Myth: Customers don’t like it

Reality: Most of the largest firms in the UK have no issue with suppliers using invoice finance. Those that do are often those that have the worst payment practices themselves. But, if you are worried about disclosure, the funding can be provided confidentially (subject to status) and your customers won’t be aware of the funder’s involvement.

Myth: It takes away control

Reality: Conversely, allowing funders to manage the collections process can give you back control – by regaining the time to focus on growing your business and core objectives while the invoice finance company looks after your sales ledger management. But if you’d prefer to stay close to your customer relationships, variations of invoice finance exist which allow you to do so whilst still accessing the funding your require.

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Myth: It’s expensive


Invoice finance can cost more than traditional funding through a bank overdraft or loan, but it can also have better benefits. We don’t just mean in terms of the funding it provides (because funding is advanced against the invoices you raise, facilities grow in line with your business), it can also include a range of extra services including credit control and bad debt protection.

Myth: It locks you in

Reality: It is possible to opt for a flexible solution where you can finance one-off invoices on an ‘as needed’ basis. By choosing individual invoices, cash flow can be better managed and companies do not have to sign up for a facility for their whole debtor book. Although even facilities that do release funding against every invoice, where that’s desired, come with a range of terms depending on the funder you select.

Myth: It’s confusing

Reality: Invoice finance can seem complex, but it doesn’t have to be. At Hilton-Baird we can break it down, explain the terminology, help you compare facilities and ultimately support you in finding the right funding solutions for your business. We will get to know your business and its goals and funding needs, then identify a facility tailored to your specific requirements. Once you have secured a facility, we will continue to be there to support your business as it grows.

Call our team on 0800 9774833 or request a call back for information, or use our invoice finance calculator to see how much you could release:


Some of the funders we work with

  • Leumi ABL
  • Aldermore Invoice Finance
  • Partnership Invoice Finance
  • eCapital Commercial Finance
  • Santander Corporate & Commercial
  • Haydock Finance Ltd
  • Praetura Invoice Finance
  • Lloyds Bank Commercial Finance
  • Royal Bank of Scotland
  • Accelerated Payments
  • InvoCap
  • Castlebridge
  • Peak Cashflow
  • Clear Factor
  • Blazehill Capital
  • Regency Factors
  • 4Syte
  • IGF Invoice Finance
  • Merchant Money
  • Giant
  • Davenham Asset Finance
  • Barclays
  • Berkeley Trade Finance Ltd
  • Nationwide Finance
  • Optimum Finance
  • Tradeplus24
  • ABN AMRO Commercial Finance
  • Sonovate
  • Close Brothers Invoice Finance
  • Metro Bank SME Finance
  • Skipton Business Finance
  • Time Finance
  • Pulse Cashflow Finance
  • PNC Business Credit
  • MaxCap
  • Roma Finance
  • Woodsford Tradebridge
  • Ultimate Finance Group
  • Team Factors
  • Investec
  • Kriya
  • Cynergy Business Finance
  • Davenham Trade Finance

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders