Invoice finance is not a new concept. In fact, businesses have been using it for decades to support their growth. Invoice finance, which is also referred to as ‘factoring’ or ‘debtor finance’, has significantly evolved over the years due to advancements in technology and innovative funding alternatives. It no longer carries the stigma or negative features that business owners might associate with traditional factoring.
Invoice finance can be a powerful tool for many businesses if used correctly – we debunk some of the BIG myths of invoice finance, which may be stopping you from taking your business to the next level of growth.
Myth 1: Funding your whole ledger
Traditional factoring companies force businesses to factor their WHOLE ledger. As a growing business you want to have full control of your finances so that you can effectively manage your cash flow. Picking and choosing which invoices you want to fund can be much more cost effective. Timelio enables you to choose how much funding you need, allowing you to have full control over your cash flow.
Myth 2: Lock in contracts
Hate the idea of being tied down for 12, 24 or even 48 months? A lot can happen in 12 months and lock in contracts can limit your ability to be flexible with new opportunities. At Timelio, there are no fees to sign up, no ongoing fees or contracts that lock you in.
Myth 3: Losing the Customer Relationship
Traditional factoring often results in factoring companies contacting your customers and chasing outstanding debt. Losing that ownership of your customer relationship to a third party can be detrimental to your future success. Here at Timelio, we never interfere in your customer relationships. This means you’re in control of managing these important relationships.
Myth 4: Only failing companies use it
The negative stigma surrounding invoice finance has long gone and companies now use it as an effective tool for growth. Timelio’s flexible financing has helped many businesses to develop and expand over the years. Check out our case studies HERE on how Timelio customers have used invoice finance to achieve their business goals.
Myth 5: It will take too much time
With advances in technology, there’s no need for concerns around the time it takes to manage an invoice finance facility. With an online portal, including reporting tools, the Timelio platform saves you time. It’s user friendly and easy to use. All you need to do is upload your invoice and supporting documentation and you will receive funds within 24 hours. It only takes a few minutes!
Myth 6: It is too expensive
When business owners hear about the flexible and simple to access funding that invoice finance provides it is assumed to be an expensive option. In fact, invoice finance can be more cost effective than a business loan given the short-term nature of the funding. And because the amount of funding available to you increases with your sales, you won’t need to miss any important opportunities for revenue growth.
Myth 7: It will worry my customers
The chances are your customers may also be using invoice finance. However, if you are worried about what your customers may think, Timelio offers a fully confidential invoice finance facility. This means your customers will not be aware of your facility.
Myth 8: It is too confusing
Receive early payment on your customer invoices, it’s that simple. Every time you call Timelio you will be speaking with a Chartered Accountant who will be able to advise you on your best funding options. We aim to make our process as user friendly and transparent as possible.
Myth 9: Only well-established businesses can use invoice finance
Traditional banks and invoice finance companies often require a company to be well established with more than two years of profitable trading before advancing funds. New companies wanting to fund their growth often struggle to get adequate financing to support their needs. At Timelio, our funding is accessible to all businesses types and sizes.
Myth 10: You must have domestic customers
Many finance companies only provide funding against your local customers. We understand how important it is be a global business and take advantage of international opportunities, so we make it possible to fund your overseas customer invoices too!
If you want to learn more about invoice finance and understand the Timelio difference, feel free to call us on 1300 38 63 63 to speak with one of our experts or email if you have any questions on how invoice finance can help YOUR business.