6 Facts About Invoice Finance Myths That Will Impress Your Friends

A healthy cash flow is vital to any business, but businesses that issue invoices to other businesses may sometimes find that they are not receiving payment promptly or early enough, causing cash flow issues.  There are myths surrounding invoice finance that we have sought to answer:

Myth one:  It worries and repels customers

FACT: Clients may think that if your business is using an invoice financing solution to access cash up-front, this is a sign of financial difficulty or means that your company is high risk. In fact, using an invoice finance facility if necessary is good business sense and many businesses use the services.

Myth two: Using invoice financing means persisting financial difficulty

FACT: It is naïve to assume that just because a company is large and has a strong credit history that it is immune from facing cash flow problems from time to time. In our experience, we see just as many businesses looking to use funding to grow.

Myth three: Invoice finance contracts usually have overly complicated terms

FACT: A common worry for many SMEs is the lack of transparency when it comes to pricing within the terms of a contract. Whist some invoice finance have complex fee structures, others appreciate that onerous and longwinded clauses deflect interest from customers.

Myth four:  Invoice finance is only available to small/large businesses.

FACT: Invoice finance is available to businesses in a wide size range. It is often not the size of the business that matters, but their sales ledger. 

Myth five: It interferes with, and can sometimes jeopardise, client relationships

FACT: Invoice finance providers do not benefit from damaging relationships between a business and its customers, quite the opposite in fact.  We don’t hound your customers, we stick to the terms you agreed with your customers.

Myth six: Invoice finance can help my business to grow, but not internationally.

FACT:  Invoice finance is not relegated to just domestic transactions. One type of invoice finance is trade finance, which allows an exporter to obtain advance funding on an invoice.  We can provide payments to your suppliers and also fund international invoices.


There are a lot of alternative finance companies out there that do the same as we do. They share the what and how.  Our clients and partners work with us for our why and our who.   We’re dedicated and focused on our clients.

To discuss the funding options available to your business. Please do not hesitate to contact us on 0161 280 4220 or lynnew@regencyfactors.com

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