With almost half of all small businesses now using some form of invoice finance, the bank overdraft is fast becoming extinct as a means of financing a growing company. The reasons behind this are numerous as there are some major advantages of invoice finance over an overdraft.

For a start, invoice finance is generally only secured by your outstanding invoices. This means that you don't need to offer bricks and mortar, or in the case of most small business, the family home to prop up the business. If something unforeseen should happen to your business, your family does not suffer as they would with a bank loan.

Secondly, invoice finance is based on the amount of work you do, not on the amount of bricks and mortar offered. If you need an increase in the amount of working capital because you have been busy, your invoice finance facility grows with the increased work. An overdraft on the other hand, needs to go back to the bank for approval, and if your property security does not match the working capital requirements, then you cannot get the increase in the overdraft.

If you would like to know more about why invoice finance is fast becoming the preferred method of obtaining working capital, then call us on  1300 652 158 for an obligation free chat.