Invoice finance has, at times, had a bad reputation. It’s perceived as old fashioned, a bit dusty, too expensive, hard to apply for, so, when companies are considering sources of funding, it just doesn’t feel like a great option.

But times have changed and we feel so strongly about how powerful invoice finance – done well – can be for small businesses that we have come up with a new proposition.

Humour us for a couple of minutes as we highlight some of the negative perceptions of the traditional providers and how we are different.

It’s really expensive

Many of the established providers will quote a complex fee structure relating to outstanding lends, minimum fee charges, transaction fees, subscription fees and interest calculated on a daily basis. Before you know it, fees start to creep upwards and you have idea of where it will end! Oh, and credit insurance is charged as an optional extra.

Not for us.  At Hydr, we quote a single fee that is fair and fixed so that you know exactly what you will be charged to receive 100% of the value of that invoice (minus our fee) in your bank account within 24 hours. Every invoice we fund is credit insured and our fee once quoted will never, ever change – even if your customer is a little late in paying. No hidden charges, no extras.

It will change how my customer thinks about me

There are providers out there who manage the collections process – and let’s be honest about this – in such a way that is not exactly in lockstep with your company’s values or aspirations. For them, it can be about payment at all costs, including your reputation!

We take pride in building relationships with your customers – that means your customers get to know exactly who we are, what we do and see us as an extended member of your finance team. We work hard to build great relationships with them and in turn, help you strengthen yours. We have clients who tell us their relationship with their customers has improved as a result of us being part of their team.

Yes, we are new, but we are in this for the long term. We appreciate we are dealing with two of your most valuable assets: your priceless reputation, and your invoices which unlock the lifeblood of your company – cash.

It’s not worth the hassle

This is a common one and it’s because the fees, hefty admin requirements and paperwork have put a lot of businesses off considering invoice finance. Technology, however, has revolutionised the way we do business. Our software and class-leading Xero integration mean that the complexity there once was is just not there anymore. Onboarding is quick and seamless with funding decisions in real time.

We offer a complete technology integration: once onboarded you simply raise your invoices within Xero as you always do. We then fund them and park them in the right place within your Xero accounts. Then, when we are paid, we enable a seamless, effortless reconciliation.  You can always log in to our customer dashboard but by just by logging into your Xero, you’ll always be able to see what is going on.

I can’t get my full invoice value funded

You would be forgiven for thinking that. Most providers today offer payment for 70% – 90% of your invoice value, topping up the balance when the invoice is paid by the debtor.

For Hydr, this just isn’t good enough. We will always pay 100% of the value of your invoice. There’s no catch, no smoke and mirrors. Just a single, full payment, minus our fairly priced, fixed fee in your bank account within 24 hours. We don’t like the complexity of sending you the remaining balance, any more than you like waiting for it!

Our customers might assume we’re in financial difficulty

In the past, some businesses have viewed invoice financing funding as a last resort and would choose it only after they had been refused other forms, such as a bank loan or an overdraft. However, partnering with a company that has your reputation at the heart of the proposition enables you to make the most of the many positive reasons that small businesses have adopted it. We believe you should consider invoice finance because you are well managed, confident and ambitious.

It’s a poor way to solve my cash flow dips

In the past, it might have been more straightforward to apply for an overdraft or talk about a bank loan.  Combined with opaque costs and reputational risk, yes, it was potentially a poor solution.  But no more!  With Hydr, you can bridge those cash flow gaps quickly and seamlessly without having to take on new debt or lose any control of your business.