• 14 Sep

    Why Do Businesses Think Invoice Finance Is Easier To Get Than Overdraft?

    As you may have seen from my previous posts only 7% of businesses think that it is easier to qualify for invoice finance rather than a bank overdraft. This is a major misunderstanding as invoice finance is often available in cases where an overdraft is not.

    Of those businesses that said that they thought it would be easier to qualify for invoice finance than overdraft we went on to ask them why.

    These were the reasons they gave:


    • 3 said "flexibility"

    • 1 said an invoice finance company monitors constantly, funding grows with you, more of a relationship

    • 1 said less restrictions

    • 1 said the factor (factoring company) has control

    • 1 said their overdraft was taken away, they looked into factoring and it was up and running in 2 weeks


    These reasons are all aspects of why it is easier to qualify for invoice finance than overdraft however so few businesses seem to be aware of them.

    By Glenn Blackman

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metro bank sme finance
investeccapitalsolutions
pennyfreedom
igf
nucleus
pulse cashflow finance