Jardine Norton

Will my customer know if I’m using a Selective Invoice Finance company?

When business owners consider using selective invoice finance for the first time, many worry that it will reflect badly on their company if their customers know they are getting help with their cash flow.

To get around the issue some selective invoice finance companies do offer a confidentiality service. A new bank account is set up in your business name, and all transactions pass through this, so your customer remains unaware that they are dealing with a third party finance provider.

While this may seem an attractive option, in our experience customers worry less than might be expected about companies using invoice finance or factoring services to help keep their cash flow moving.

For large companies, the majority of invoices they receive will be sent via third party finance providers of one form or another. It’s completely normal for them, and arguably even indicates a more professional approach.

For small to medium sized companies, the need for invoice finance often indicates that their company is growing. They may need the extra capital to hire new staff, purchase new equipment, or simply get the job done. No customer is going to complain about steps a business takes to provide their goods or service faster or better.

In short, confidentiality is possible when taking advantage of a selective invoice finance service. However, in the vast majority of cases your customers won’t be perturbed to receive an invoice from a third party provider.