Factoring or a Bank Overdraft?

We understand that the main problem with an overdraft is that it is repayable on demand and can be withdrawn at anytime. Also, the limit is usually fixed and, should more be required, the client generally has to go through the whole process again resulting in more time and cost.

Factoring can provide you with twice as much cash as an overdraft
A factoring facility will grow with your business
There is no need to put up your home as security
With Factoring, you can outsource management of your entire sales ledger saving you both time and cost

Factoring provides a much safer and more flexible funding solution for many SMEs simply by providing certainty of contract (i.e. not repayable on demand) and increased funding linked to sales and not the historic financial performance.

What is Factoring?

Factoring is a flexible cash flow solution, which advances money to a company as it issues new invoices. Factoring is probably the most common form of invoice finance in the UK. For more information on what factoring is and how it can work for your business, please go to our factoring section.

Want to know more about Invoice Finance v a Bank Overdraft?

If you would like to read a more comprehensive article on why we feel invoice finance is so much more beneficial to your business than a traditional overdraft, please go to our blog section.

Contact us today!

We’d be delighted to help structure a finance solution that fits perfectly around your business, with both factoring and invoice discounting facilities able to unlock your cashflow.

You can get in touch by ringing us on 0845 602 9354 or emailing us at info@skiptonbf.co.uk. Or why not utilise the handy form on the right and we’ll call you back with all the information you need!

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