There are many alternatives to a traditional business overdraft, but the most suitable alternative will depend upon what you actually want the funding for. Here are the different options that are available:
The mainstream products under the Invoice Finance umbrella are invoice discounting, invoice factoring and single invoice/single debtor finance. All of these facilities allow you to borrow against the invoices that are yet to be paid by your customers. Typically, lenders will advance up to 90% of the gross invoice value to you the day after the invoice is raised. This type of funding is more flexible than a bank overdraft as it grows in line with the growth achieved by the business.
Supply Chain Funding or Trade Finance
These products are similar in many ways, they allow you to access cash to pay suppliers. They can be an ideal solution for importers and wholesalers depending on when in your trade cycle you need to access cash. We can talk you through these options.
Supply chain funding is not as well known as other mainstream funding mechanisms, however it can work well for the right business. It is also an unsecured facility, rather than being debenture or director guarantee lead.
Asset Finance is a great solution if you are looking at a capital expenditure. This product allows you to spread the cost of the purchase over the life of the asset. There are different asset finance options available:
- Hire Purchase
- Finance Lease
- Operating Lease
We can discuss which option your business would benefit from the most.
This facility gives you the option to refinance an asset that is already owned by the business. This option can help inject cash into the business or to help reduce costs elsewhere.
There are a variety of Business Loans, some are secured loans and others are unsecured loans. There are numerous peer to peer loan providers who have a more efficient process compared to the high street banks, however the cost of funding is higher.
We can find the right funding solution for your business, please contact us on 01635 283089 or email us at email@example.com for more information.