Debunking the top 3 myths about Invoice Finance


By Mark O'Rourke, Managing Director, Ireland

14 Oct 2019

For SMEs looking to take the next step in growing their business, relying on personal sources of finance or looking to reinvest company profits will have limited results. Instead, businesses seeking to expand and develop should be considering alternative sources of finance, such as Invoice Finance.

However, there are a number of misconceptions when it comes to Invoice Finance, which can make business owners hesitant to employ this solution and, ultimately, result in business failing to reach their full potential. With that in mind, we wanted to bust some of the most common myths that surround Invoice Finance.

Myth #1: Securing Invoice Finance is slow and cumbersome

Depending on the nature of your business, or for any long-term projects, you may be able to apply for and secure financing months in advance of needing the cash in hand. But what about those times when you need access to cash quickly?

While it’s true that securing suitable cashflow via the main lenders can be a slow and complicated process, alternative providers can typically respond much faster. Invoice Finance, for instance, allows businesses to raise cash against unpaid invoices, providing an immediate and ongoing supply of cash that grows with your business. Best of all, we pay up to 90% of the value of your invoice within 24 hours – allowing you to pay staff, suppliers, or take on new orders.

Myth #2: Using Invoice Finance will negatively impact the reputation of my business

Traditionally, businesses may have been hesitant to turn to alternative finance due to the reputational risk they might incur with customers should it become public knowledge. However, savvy SMEs recognise that alternative finance can be crucial to a winning formula and add a flexible string to their bow.

With Bibby Financial Services Ireland, we offer a confidential service to ensure there is no risk of reputational impact among customers and competitors. Our relationships are built on trust, and we’re delighted that this approach has been strongly endorsed by our clients, leading to a client satisfaction rating of 95%. 

Myth #3: Invoice Finance is expensive

While short-term finance is typically more expensive than longer-term loans, at Bibby Financial Services Ireland, we understand that we only succeed when the businesses we work with succeed. As a result, we offer highly competitive rates that mean our clients needn’t worry that any success achieved through Invoice Finance will be undermined by high fees.

In addition, our partnership with the Strategic Banking Corporation of Ireland means we can offer discounted services to qualifying businesses.

While these are the top three myths that most often dissuade SMEs from pursuing invoice finance, there’s a raft of additional benefits that make doing so the best way to grow your business. Having control over your cashflow means you can build stronger relationships with suppliers and customers, and we also provide a range of complementary products including Foreign Exchange and Bad Debt Protection.

If you’re interested in utilising Invoice Finance and would like to discuss the best, tailored approach for your business, contact a member of our team today.

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