MYTH BUSTING: Invoice Finance

I must have a conversation with a Company Director about once a week where they say, “Mark, I didn’t know that was available”  or “I didn’t know that type of finance existed”.

The truth is, why should you know my specialist field as well as I do?

Take raising finance using your Invoices as an example; people tend to have preconceived ideas which might have been true at some time in the past.

But, just like booking a holiday used to involve marching into a travel agent to be told what’s on offer from a select few packages, this type of finance has seen huge changes in the past few years.

So, here are a few invoice finance myths I thought we could debunk today. 

Myth 1

All invoice finance companies are the same, no, no and no. I promise you; they vary enormously; it’s like a restaurant; just because you had a bad meal in one does not mean they are all like that.

The truth is you just went to the wrong one.

At the last count, I was told that over 80 Finance Companies are offering some type of finance on your invoices - how would you know which is the right one for your particular business requirements?

Myth 2

You must give a Personal Guarantee and be a homeowner. 

There are many types of invoice finance where a Personal Guarantee is not necessary, please call me, and I can run through your options, and I am sure there will be more than you thought possible.

Myth 3

Invoice Finance would not work for me BECAUSE…

• My billing is complicated and contractual – no problem at all if you know where to go, and I do.
• They want all your debtor book, and I don’t want to finance my quick payers – no issue here; choose which invoices you would like an advance on and only use this type of finance when it suits you.
• I tried it once, or a friend of mine did, and it didn’t work - they simply went to the wrong lender. 

Let me give you some reasons why you might consider Invoice Finance:

• If you are struggling to borrow enough money (and it is harder now than I can remember for many years). Then you might find Invoice Finance will completely transform your business, giving you the funds for growth that you could not get from Banks or other finance companies.
• In the current economy, unexpected bad debts can affect all businesses a bit like a virus with the knock-on damage they spread. With Invoice Finance, many company Directors say they sleep better at night (whether they use the facility or not) because if an unexpected problem occurs or an unexpected opportunity presents itself, they know they have the cash instantly available in reserve. 

If you're still on the fence about whether invoice finance is right for you, the easiest thing you can do is pick up the phone; I'm always available on my mobile  07710466166 and would love to walk you through your best options - alternatively, feel free to schedule a call over on Calendly.