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[vc_row full_width=”stretch_row” enable_overlay=”enable_overlay_value” overlay_color=”rgba(227,252,255,0.95)” css=”.vc_custom_1487928472851{padding-top: 5% !important;padding-bottom: 5% !important;}” el_class=”vcr_row”][vc_column width=”2/3″ el_class=”circle-content-left rs_col-sm-12″ offset=”vc_col-lg-8 vc_col-md-12″][ultimate_heading main_heading=”Invoice finance or business overdraft – that is the question” heading_tag=”h4″ sub_heading_color=”#2f3436″ alignment=”left” sub_heading_font_size=”desktop:20px;” sub_heading_line_height=”desktop:45px;” main_heading_font_size=”desktop:24px;” el_class=”second-section”][/ultimate_heading][vc_column_text css=”.vc_custom_1488794762158{margin-top: 35px !important;}”]Please note that an invoice finance facility is often more appropriate for long-term funding than an overdraft which is likely to cost more than an overdraft and be less flexible.

Overview of an overdraft facility

An overdraft is a borrowing facility attached to your bank account, set at an agreed limit. It can be drawn upon at any time and is ideal for your day-to-day expenses, particularly to see a business through cashflow problems.

  • Difficult for new or small businesses to qualify
  • Personal guarantees are needed to attain an overdraft
  • Banks often request extra security such as charge on a directors home
  • An overdraft is meant to be a short term source of finance and should not relied upon long term
  • Overdraft can be ” called in” or cancelled or removed at any time
  • An overdraft is only meant to cover the odd cash shortage and should not be over relied up as part of a business strategy
  • An overdraft is flexible and you can liaise with your bank manager to open and close a facility on request.
  • An overdraft is quick to arrange
  • Overdraft can be expensive and actually very costly if a facility maximum passed.
  • Interest and charges vary from bank to bank
  • There are no charges for paying of an overdraft and cancelling the overdraft facility
  • If an overdraft is extended often extra fees apply
  • You can only seek an overdraft from the businesses main banker.
  • An overdraft is to all businesses types.

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Overview of an invoice finance facility

Invoice finance is a way of drawing money against your invoices.. It can provide a cost-effective way for businesses to improve their cashflow.

  • Invoice finance is a long term arrangement, providing working capital security and will only ever be cancelled if a business seriously falls on hard times
  • An invoice finance facility grows with turnover
  • You can only seek an invoice finance arrangement from a bank separate from the business banking facility
  • An invoice finance facility can be extended very easily
  • Invoice finance is only available to businesses that sell products or services on credit to other businesses.
  • Invoice finance is not necessarily the cheapest form of finance and can tie a business into a long contract.

[/vc_column_text][vc_column_text]For more information regarding invoice finance quotes please call 0800 597 4757 or apply online.[/vc_column_text][/vc_column][vc_column width=”1/3″ offset=”vc_col-lg-4″][vc_widget_sidebar sidebar_id=”standard-sidebar-right”][/vc_column][/vc_row][vc_row][vc_column][ultimate_heading main_heading=” Invoice Finance Menu” alignment=”left”][/ultimate_heading][vc_column_text]

[/vc_column_text][/vc_column][/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1487916029821{padding-bottom: 8% !important;background-color: #e3fbfe !important;}”][vc_column][ultimate_spacer height=”50″][dt_sc_tabs style=”frame” class=”type6″][dt_sc_tab title=”Invoice Factoring” tab_id=”def1475816402-1-10″][vc_row_inner][vc_column_inner width=”2/3″ css=”.vc_custom_1473750260465{padding-right: 15% !important;}”][vc_widget_sidebar sidebar_id=”standard-invoice-factoring-description”][/vc_column_inner][vc_column_inner width=”1/3″][vc_widget_sidebar sidebar_id=”standard-invoice-factoring”][/vc_column_inner][/vc_row_inner][/dt_sc_tab][dt_sc_tab title=”Invoice Discounting” tab_id=”def1475816402-2-19″][vc_row_inner][vc_column_inner width=”1/3″ css=”.vc_custom_1473750260465{padding-right: 15% !important;}”][vc_widget_sidebar sidebar_id=”standard-invoice-discounting”][/vc_column_inner][vc_column_inner width=”2/3″][vc_widget_sidebar sidebar_id=”standard-invoice-discounting-description”][/vc_column_inner][/vc_row_inner][/dt_sc_tab][dt_sc_tab title=”Other Options” tab_id=”1475817260603-2-2″][vc_row_inner][vc_column_inner width=”2/3″ css=”.vc_custom_1473750260465{padding-right: 15% !important;}”][vc_widget_sidebar sidebar_id=”standard-other-options-description”][/vc_column_inner][vc_column_inner width=”1/3″][vc_widget_sidebar sidebar_id=”standard-other-options”][/vc_column_inner][/vc_row_inner][/dt_sc_tab][dt_sc_tab title=”Industry Specific” tab_id=”1475817300871-3-10″][vc_row_inner][vc_column_inner width=”1/3″ css=”.vc_custom_1473750260465{padding-right: 15% !important;}”][vc_widget_sidebar sidebar_id=”standard-industry-specific”][/vc_column_inner][vc_column_inner width=”2/3″][vc_widget_sidebar sidebar_id=”standard-industry-specific-description”][/vc_column_inner][/vc_row_inner][/dt_sc_tab][/dt_sc_tabs][/vc_column][/vc_row][vc_row full_width=”stretch_row” content_placement=”middle” css=”.vc_custom_1475127061591{background-color: #f8f8f8 !important;}”][vc_column css=”.vc_custom_1474881177744{padding-right: 15% !important;padding-left: 15% !important;}” el_class=”contact-info-bottom”][vc_row_inner equal_height=”yes” content_placement=”middle”][vc_column_inner width=”1/3″ css=”.vc_custom_1475835936659{padding-top: 35px !important;padding-bottom: 35px !important;}”][vc_widget_sidebar sidebar_id=”standard-address”][/vc_column_inner][vc_column_inner width=”1/3″ css=”.vc_custom_1477130271207{padding-top: 35px !important;padding-bottom: 35px !important;padding-left: 9% !important;background-color: #ffffff !important;}”][vc_widget_sidebar sidebar_id=”standard-phone”][/vc_column_inner][vc_column_inner el_align=”center” width=”1/3″ css=”.vc_custom_1475835849772{padding-top: 35px !important;padding-bottom: 35px !important;}”][vc_widget_sidebar sidebar_id=”standard-social”][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]