5 Common Invoice Factoring Myths: Debunked and Explained

Invoice factoring myths are some of the biggest barriers standing between businesses and their goals. Some people believe their business is too stable for this resource, while others worry about maintaining client relationships. 

These myths don’t just slow progress down: They potentially put you into debt and waste precious time that could be spent on other business operations. At Riviera Finance, we’re keen on connecting business owners with the tools they need to finally get paid. 

Growing your business means maintaining consistent cash flow. When you’ve got piles of unpaid invoices slowing down progress, invoice factoring can help. Let’s take a look at common myths about invoice factoring, then break down the truth of the matter. 

Myth #1: Invoice Factoring Is Too Expensive

When you’re already struggling to keep your cash flow consistent, invoice factoring seems like an unnecessary expense. Why should you spend more money when you’re trying to collect money you’re already owed? 

Reality

This is one of the worst invoice factoring myths since it gets in the way of businesses getting help. It’s actually more expensive to wait for months and months before customers decide to pay you. The vacuum where your funds should be can put you at the risk for accumulating debt or wasting your time chasing down payments. 

Invoice factoring makes keeping your cash flow consistent with a straightforward payout much easier. Just contact your invoice factoring company to sell your invoices. If you’re looking for an invoice factoring company, get started with Riviera Finance today. 

Myth #2: Only Struggling Businesses Benefit from Invoice Factoring

When your small business is enjoying steady payments and plenty of demand, invoice factoring is excess work. Why bother going through the trouble of invoice factoring if your cash flow is usually consistent? 

Reality

When it comes to invoice factoring myths, this misconception can actually make successful businesses struggle more in the future. After all, it only takes a few missed invoices to cause problems. You lose time trying to contact people for payments, struggle to pay some of your bills, or have to put off other administrative tasks.

Invoice factoring is a useful resource no matter where you are in your business journey. You can use it when you’re struggling or when you just want a little more peace of mind. 

Myth #3: You’ll Lose Control of Clients Relationships with Invoice Factoring

Businesses must put their most personalized and attentive foot forward when interacting with clients. Wouldn’t invoice factoring feel impersonal or even pushy? 

Reality

This myth is one of the most common invoice factoring misconceptions, though it comes from an understandable place. Your relationships with clients are the lifeblood of your business. Without positive reviews and repeat business, you’ll struggle to stay afloat.

However, invoice factoring is a popular tool in many industries. Clients are unlikely to think less of you for using a professional and streamlined invoice factoring service. Not only do they care about the product or service you’re providing, but they likely have more pressing concerns than your payment methods. 

Myth #4: Invoice Factoring Funding Takes a Long Time

When you’ve already waited for weeks (or months) to get your invoices paid, invoice factoring services can seem like a tedious addition. Will invoice factoring companies make you wait even longer during their application and payment process? 

Reality

Here’s an invoice factoring truth you’ll be happy to hear: Invoice factoring is extremely fast when you pick the right company. Riviera Finance will fund your business within 24 hours after a streamlined verification process. 

This speed means you get to complete payroll on time, pay your overdue rent, or take on new clients more quickly.

Myth #5: Invoice Factoring Can’t Cover Large Amounts of Invoices

What if your unpaid invoices just keep piling up? It might be too difficult for invoice factoring companies to keep track of all the payments you need to collect. 

Reality

We can’t emphasize enough how flexible invoice factoring companies are. Riviera Finance regularly helps businesses with large quantities of invoices to keep their cash flow as smooth as possible. 

Riviera Finance Is Your Partner For a More Stable Business

We know how frustrating and tiring it is to face unpaid invoices. When you need to keep your cash flow consistent and get your bills paid, Riviera Finance is in your corner.

Our services span across several industries, such as transportation, staffing, maintenance and more, to help businesses access diverse funding options. We’ll walk you through the invoice factoring pros and cons for your specific business goals, explain how it will work for your business, and then get you the solution you need.

 

Don’t let these invoice factoring myths stand between you and success. Contact us today to see how invoice factoring could help improve your cash flow and help your business grow.