Invoice Loans Versus An Overdraft: What Is The Right Choice?
Invoice Finance

No matter how successful a small, or even medium business is, dealing with cashflow is often a challenge. Businesses may be able to control their outgoings and win big contracts, but when invoices are being paid later and later, issues arise with maintaining regular cashflow. In order to keep employee wages paid and meet payment responsibilities, businesses sometimes find they are sinking into their overdraft. When it comes to business financing, relying too much on an overdraft is a quick way not only to complicate your relationship with the bank, but also to allow things to get out of control. There is a better way, and it’s invoice finance (sometimes called invoice factoring or debtor finance) with Apricity Finance.

The Ease Of An Overdraft

It can be difficult to break the habit of utilising an overdraft to meet your business financing needs. In the past, many businesses – particularly smaller businesses – had no choice but to rely on their own bank facilities, like their overdraft, to deal with cash-flow concerns.

In the years since the GFC, it seems that it is no longer that easy for small businesses to utilise their overdraft the way they had in the past. Banks are limiting this unsecured lending as they opt for lower risk borrowing situations. The data shows that banks now want collateral before they will consider almost any kind of business financing, which puts small businesses at a particular disadvantage. The benefit of an overdraft was as a short-term and simple solution to bridge the gaps in cash-flow. However, with these limitations and banks reducing small business credit, it is no longer a viable option.

Why Choose Invoice Finance?

This is of course where invoice finance through Apricity Finance comes in. If your business is supplying to high credit customers, such as listed companies, government and other large organisations, then you may be eligible. Invoice factoring allows approved businesses, no matter their size, to borrow in the short-term using invoices for works already completed. This means if you have completed the work but an invoice has a 30, 60 or 90-day payment period, you can start to use that money right now, with a short approval process and fast pay outs. When you choose invoice finance with Apricity Finance, we generally only need security in the form of an approved invoice awaiting payment, and our applications are quickly processed so your cashflow is not interrupted.

Apricity Finance Can Help

With invoice finance, businesses can have more choice and more freedom, by accessing the money they have earned sooner. The team at Apricity Finance can help you work through the process to ensure it is suitable for your business.

You can get in touch with us today to see how we can improve your production capacity with our cashflow finance solutions, how invoice finance works and how we compare. Contact Apricity Finance, and ask about our invoice factoring service now.