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The truth behind 6 common invoice finance myths

26/03/2018 / Comments 0

The truth behind 6 common invoice finance myths

Invoice finance continues to be a trusted finance option for over 40,000 companies in the UK. But due to a lack of understanding some companies shy away from using this funding option to boost their cash flow.

In the past invoice finance may have been perceived as a last resort option for companies in trouble but that is no longer the case with the benefits of invoice finance putting this option ahead of traditional bank lending for businesses looking to grow.

Here we dispel six common myths about invoice finance and show that it could be a viable funding option for your company too.

Myth: It’s a sign of trouble

Reality: The stigma once surrounding invoice finance has gone. Most companies nowadays use it in a positive way to boost working capital and grow their business. In fact over 40,000 businesses in the UK are now reaping the benefits of this flexible form of funding.

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 will have no idea.

Myth: It takes away control

Reality: Allowing funders to manage the collections process is not a necessity. By keeping control of the invoice process, companies can still raise cash flow finance, manage collections, and maintain control over client relationships.


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Myth: It’s expensive

Reality: Invoice finance will most likely cost more than traditional funding through a bank overdraft or loan but it can have better cash flow benefits. Often, it is the only funding option available that will generate the funds to support growth. Plus, with invoice factoring you get more than just funding, you can also get a flexible solution which can include credit control expertise 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.

Myth: It’s confusing

Reality: Invoice finance can seem complex but it doesn’t have to be. At Hilton-Baird we can help you find the right funding solutions for your business. We will get to know your business and its goals and funding needs. Then we will find a facility tailored to your specific requirements and once you have secured a deal 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:

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Some of the funders we work with

  • Pulse Cashflow Finance
  • Nucleus Commercial Finance
  • Positive Cashflow Finance
  • Aldermore Invoice Finance
  • Barclays
  • Davenham Trade Finance
  • Roma Finance
  • Regency Factors
  • Partnership Invoice Finance
  • Investec
  • Platform Black
  • InvoCap
  • Lloyds Bank Commercial Finance
  • Ultimate Finance Group
  • Woodsford Tradebridge
  • PNC Business Credit
  • Bibby Financial Services
  • 1pm
  • Assetz Capital
  • IGF Invoice Finance
  • Spotcap
  • Innovation Finance
  • iwoca
  • Royal Bank of Scotland
  • Shawbrook Business Credit
  • Close Brothers Invoice Finance
  • Everline
  • Catalyst Finance
  • Working Capital Partners
  • Outsauce
  • ABN AMRO Commercial Finance
  • Davenham Asset Finance
  • Trade Finance Partners
  • Calverton Finance
  • Secure Trust Bank
  • Asset Advantage
  • GapCap Cashflow Finance
  • Creative Capital
  • Santander Corporate & Commercial
  • Leumi ABL
  • Skipton Business Finance
  • Henry Howard Cashflow Finance
  • Metro Bank SME Finance
  • Team Factors
  • Market Invoice

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