Is your business in need of an alternative to an overdraft facility?
There are times when businesses will need to source finance to help ease those peaks and troughs in their cashflow. This is where an overdraft style facility may be beneficial to your business, if approved, you would typically be given a 12 or 24 month facility that allows you to drawdown on funds as and when your business requires them.
You would only be charged for money that you have drawn-down on, with interest being added daily, weekly or monthly, though with the ability to pay the funds back at any time with no additional fees or charges.
These alternative overdraft facilities give businesses the flexibility to cover short term cash flow issues, such as unexpected bills, waiting for invoices to be paid, growth or even stock.
Do I need to offer security on an alternative overdraft facility?
All our funders offer unsecured facilities, though it would also depend on the funder, product, and amount that you would like to secure.
Are alternative overdraft facilities expensive?
If used in the correct fashion then you should be happy with the facility, we would not recommend businesses taking out large facilities and running it to the limit over a long period. It is designed to be used on a sporadic basis, with the drawn-down funds settled once your business has the funds.