Six common Invoice Finance myths explained

If you have never used Invoice Finance before, you have probably heard some common and consistent themes about the funding solution. It is important that businesses have a clear perception of the funding options available to them which is why we decided to explain some of the common myths of Invoice Finance.  

1) Invoice Finance is only for struggling businesses

It is a common mis-preconception that an Invoice Finance facility is usually only used by businesses that are struggling and in need of financial help. Although a number of businesses may approach Invoice Finance companies for support in a time of need, a large number of businesses use Invoice Finance for other reasons such as plans for growth or an acquisition. At Skipton Business Finance, we work with a range of businesses, many of which are already established and successful. Invoice Finance can be a great option for businesses that are wanting to grow or maintain growth.  

2) They’re going to hound my customers for payments

Another common concern surrounding Invoice Finance is that customers are going to be hounded or pestered for payments. At Skipton Business Finance, we’re passionate about credit control and have a wealth of experience in ensuring our client invoices are amongst the first to be paid each month. We believe that successful credit control is more about relationship building and understanding individual customer payment cycles. However, if you are worried about your customers being chased, you can opt for Invoice Discounting. With this product, you remain in control of collecting payments from your customers, as oppose to your funder doing it for you. This is a great option for businesses that prefer to be in control of how their invoices are collected.  

3) Everyone is going to know that I needed funding

If you’d prefer your customers not know about your Invoice Finance facility, that isn’t a problem. You can opt for confidential Factoring or Discounting. This means that your customers will not be aware that you have an Invoice Finance facility in place.

At Skipton Business Finance, we understand that not every business will feel comfortable disclosing the fact that they have an invoice finance facility. This is why we have confidential solutions that can be tailored to your business.  

4) Invoice Finance is only for small/big businesses

Invoice Finance is not limited to business size. You will find that most Invoice Finance providers will work with a range of business, varying in sizes. Invoice Finance providers are more interested in how your business operates and its sales forecast. At Skipton Business Finance, we fund many businesses, ranging from new start SMEs to larger businesses who have been established for many years before they began funding. We can offer facilities ranging in size from £25k to £5m which means we support businesses of a number of sizes.  

5) I’ll be stuck in a long-term contract

We know that sometimes businesses will outgrow funding. We are proud to see businesses grow to become self-funding and so make sure that we are flexible so that our clients are not using funding if they no longer require it. Skipton Business Finance consists of a range of clients, some of which are long-term and some that have only used us for a few years.

6) It’s expensive

It is likely that an Invoice Finance facility will perhaps cost a little more than more traditional forms of funding such as a bank overdraft however it comes with a number of additional benefits. An Invoice Finance facility can offer you support beyond funding, creating a partnership between you and your funder. It can provide you with a flexible solution which includes credit control and a dedicated Relationship Manager. If you would like to find out more information about an Invoice Finance facility and the themes discussed above, email us at or call us on 0800 0854150.