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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:


Some of the funders we work with

  • Peak Cashflow
  • Metro Bank SME Finance
  • Aldermore Invoice Finance
  • Skipton Business Finance
  • Barclays
  • Giant
  • Secure Trust Bank
  • Team Factors
  • Leumi ABL
  • Regency Factors
  • Trade Finance Partners
  • Shawbrook Business Credit
  • Investec
  • Woodsford Tradebridge
  • Boost Capital
  • PNC Business Credit
  • Lloyds Bank Commercial Finance
  • Haydock Finance Ltd
  • Davenham Trade Finance
  • Calverton Finance
  • Davenham Asset Finance
  • InvoCap
  • MarketFinance
  • Positive Cashflow Finance
  • Catalyst Finance
  • Bibby Financial Services
  • Royal Bank of Scotland
  • 1pm
  • iwoca
  • Close Brothers Invoice Finance
  • Roma Finance
  • Spotcap
  • Creative Capital
  • Innovation Finance
  • GapCap Cashflow Finance
  • Pulse Cashflow Finance
  • Partnership Invoice Finance
  • Asset Advantage
  • Gener8 Finance
  • Nucleus Commercial Finance
  • 4Syte
  • Berkeley Trade Finance Ltd
  • inFund
  • IGF Invoice Finance
  • Ultimate Finance Group
  • Merchant Money
  • Santander Corporate & Commercial
  • ABN AMRO Commercial 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

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