Where Can You Get An Overdraft Facility?
If your business requires an overdraft facility to assist with its cash flow then where can you obtain this form of finance? Well, the most common place is through your existing bank where you maintain your business current account.
The reason why most businesses choose this source of finance is from a convenience point of view. As you already have your day to day business banking through your bank then the natural thing to do is to apply to them for your business overdraft facility. After all, your bank will no doubt know quite a bit about your business, may have seen audited accounts over a number of years and can see at the touch of a button how you conduct your business current account.
However, is this the most suitable place to source an overdraft facility from? Not necessarily.
If you were to approach another competitor high street bank then it may consider providing an overdraft facility for your business at a lower rate of interest and may charge a lower arrangement fee and security fee for providing such finance. This would benefit the business as it would cost less to obtain and administer such finance.
So, how could you go about sourcing a suitable business overdraft facility? Well, you could do so yourself by ringing around the high street banks. However, this may take up quite a bit of your time and that time may be better spent running your business on a day to day basis. Another option is to use the likes of a finance broker that specialises in arranging such funding for business and commercial operations. In doing so, this may enable you to obtain such finance at more competitive rates from a panel member on the books of a broker. In this respect, why not get in touch with us here at Commercial Mortgage Link and we will put you in contact with an experienced business finance broker.