Why Invoice Finance May Be A Better Option For SMEs Than Equity Finance Or Traditional Bank Loans

Growing SMEs face a number of pressures and something almost all have in common is the challenge of managing their cashflow. The juggling act of operational costs, servicing business loans and tax obligations is stressful enough; add to this uncertainty over when invoices will be paid, and the result is sustained anxiety for the business owner.

Most SMEs will have some kind of investment in their business in order to establish, operate and grow. Traditionally, finance was obtained either in the form of a bank loan or investment from other parties. These types of finance almost always compound cashflow issues along the way as the business tries to keep up with debt repayments or growth commitments.

A traditional bank loan usually means that the business is stuck in a cycle of servicing a debt (possibly with a high interest rate and long-term commitment). But also as is often the case, personal assets are used as collateral. This adds another level of risk for the business owner and their family. More importantly, bank loans are increasingly difficult to secure for SMEs, particularly if their business looks less viable on paper due to fluctuating cashflow. Our recent post on this topic examines this issue in more detail.

Alternately, investor or equity finance (where an investment is made in the business in return for a shareholding or board position) has other issues to consider. While this type of finance on the whole is invested without the need for security, the investor (or venture capitalist) will be looking for high returns and have some say in the decisions and future of the business.


Invoice finance is not a loan, the business is not taking on further debt, putting the house at risk or giving away control to an investor. In fact, invoice finance leverages existing working capital assets (invoices) to get funds back into the business sooner. Put simply, an invoice finance facility gives the business access to the funds from their invoices as soon as they are approved – leading to cashflow certainty and more ability to plan ahead. More information here on how invoice finance works

Here’s an example of how an Apricity invoice finance facility helped a client manage their cashflow and capitalise on a significant growth opportunity:


Apricity invoice finance is ideal for businesses providing goods or services to high credit customers. Our facility can be used as little or as much as your business needs, meaning you can scale up or back to meet your obligations. There are no lock in contracts and we do not ask for personal assets as collateral. This is your journey, and we believe invoice finance is the tool you need to help your business stay in control and reach its full potential.

No excuses. No fine print. Just your money faster.

Find out more about how Apricity Finance could help your business.