Invoice Factoring or a Bank Overdraft?

Proud to be part of the Skipton Building Society Group
We understand that the main problem with a traditional bank overdraft is that it is repayable on demand and can be withdrawn at anytime.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, you generally have to go through the whole process again resulting in more time and cost.
So is Invoice Factoring more competitive than a bank overdraft?
  • It generates more cash than an overdraft – usually twice as much
  • Less personal security is required meaning there is no need to put up your home as security
  • The solution is linked to your sales, not your historic balance sheet and will therefore grow with your business - meaning you don’t have to keep going back to the bank asking for more
  • It’s not based on historic balance sheet performance and therefore is suitable for businesses in a turnaround or highly geared
  • Financial stability is more certain, as agreements are for a fixed period and are not repayable on demand
  • With Invoice Factoring, you can confidentially outsource management of your entire sales ledger to Skipton Business Finance via our award-winning My White Label solution saving you both time and costs and helping avoid those difficult calls when chasing customers for payment

Invoice Factoring gives 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.

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 visit our blog section.

Contact us today & get a FREE quote!

If you need an Invoice Factoring solution or an Invoice Discounting facility then look no further than Skipton Business Finance.

Backed by Skipton Building Society, one of the largest financial establishments in the UK, means we have funds ready to lend to businesses up and down the country.

If you would like a no-obligation FREE quote, please get in touch by ringing us on 0800 0854150 (call 0330 1232437 if ringing from a mobile).

You can also email us at       

Or why not utilise the handy form on the right and we'll call you back!

 Find out more

At Skipton Business Finance, we offer the following types of Invoice Finance:

4 reasons to choose us:

  • Confused which type of finance is better for your business?
  • Which can generate you more cash?
  • Which requires more personal security?
  • What is the difference between the two? Read on to find out...