Flexibility when you need it
A bank overdraft is the most commonly suggested cash flow fix to raise working capital.
It is a loan arrangement under which a bank extends credit up to a maximum amount (called overdraft limit) against which a business can withdraw funds to cover day to day or seasonal working capital requirements.
Only pay for what you use
- Debit interest is calculated on daily outstanding balance
- No set repayment schedule (within approved limit)
- Can be linked to an existing business trading account
- Secured and unsecured options
Businesses have different needs and a bank overdraft is not the only cash flow solution. we recommend further reading on trade finance and invoice finance for details on other funding options which might be more suitable to your business' requirements. If you are interested in looking into all your financing options in detail, why not contact an LKFS consultant to discuss your business needs?