- 03 Sep
The Funding Alternative If Refused An Overdraft
We are talking to a business that has been turned down and refused an overdraft by one of the high street banks as the business does not have any assets the bank will consider as security for an overdraft.
This is a typical example of a small business that is not yet asset rich but still needs working capital to bridge the gap between the time that they invoice and the time that they get paid.
Fortunately, factoring is available to finance small and start up businesses like this one as the only asset it requires to support the funnding are the unpaid sales invoices of the business.
At a time when the government are encouraging increased lending to businesses factoring could play an important part in providing that finance but as we have found in our research factoring is not a finance product that is well known or understood by businesses generally. Factoring is an untapped resource to aid in the recovery of the UK enconomy.