5 Common myths about Invoice Finance
There are many myths surrounding Invoice Finance which have appeared over the years. Here, we dispel some of these myths:
1) Invoice Finance is too expensive:
Invoice Finance is a far cheaper these days. It is often a cheaper form of funding than a traditional overdraft or business loan when compared to the amount of funding you can gain from the facility
2) Invoice Finance is a sign your company is struggling
Over 40,000 businesses use invoice finance in the UK currently. It is one of the most commonly offered facilities by the banks, and can also be done confidentially. In most cases, your customer will already be dealing with at least one other company using invoice finance.
3) You have to be tied in for a long period of time
There are many options these days such as Spot and Selective invoice finance. You will not necessarily have to sign into a contract, as some of the options come completely free of a contractual tie in.
4) You lose control of your business
There are now many options whereby you keep control of the credit control and chasing of customers. These funding-only facilities allow you to maintain your relationships with customers.
5) You will have to fund all of your invoices
With the flexibility of Spot Factoring, you will simply borrow funds when required, and only pay for funds borrowed, without an obligation to use the facility, or charge to keep it open.