5 on orange background for 5 reasons on why invoice finance is effective.

5 Key Reasons Why Invoice Finance is More Effective than an Overdraft

Posted: 11th September 2018

Finding a finance option that suits your business can be difficult. You could find yourself weighing up if invoice finance better than an overdraft? Does this suit your businesses goals and how effective is Invoice Finance? Well here’s your answers…

1. Funding That Grows With Your Sales Turnover

As your sales turnover increases your funding availability increases, an overdraft does not provide this level of flexibility.

The invoice finance company advances the money that is already owed to you. With invoice finance, you will not need to worry about how you will repay your balance, as this is repaid once your customers settle their invoices.

2. Tailored Towards Your Short Term and Long Term Needs

Providing a short or long term facilities can directly impact your financial results. There are many options available with invoice finance to fit your needs. Whereas, with an overdraft there is only 1 option. Calverton offers a variety of choices to suit your business goals:

Long Term facilities

Short Term facilities

  • Selective Invoice Finance - Available on 1 invoice or a batch of invoices. The same concept as Invoice Finance, however, you have the options of which invoices you would like to factor.
  • ICON (In Case Of Need) - The reassurance that a facility is available to you as and when you need it.
  • Swift - Providing finance for a short term with a transparent charging structure and highly competitive fees.

3. Separate From Your Banks Arrangements

Invoice Finance is a cost effective alternative, with no reliance upon your bank. This is separate from your banks arrangements. Your bank may have refused an overdraft or to increase an existing overdraft, that’s where we can help.

4. Optional Tailored Credit Control

Calverton create bespoke facilities as well as tailored Credit Control. Your dedicated Credit Control and team will be working for you to collect payments from your customers and providing you peace of mind to concentrate on other activities that generate revenue rather than chasing for payments, or the expense of employing someone full time. 

5. Optional Selective Bad Debt Protection (BDP)

With selective BDP, we provide a personalised service, where you do not need to insure all of your customers. You can pick and choose who you would like to protect or alternatively, you can insure all of your customers.

Why are Calverton Different?

As well as being able to provide all of the above, Calverton are the newly accredited providers of the British Business Bank and can now offer the Enterprise Finance Guarantee (EFG) Scheme. We are able to offer you a bespoke invoice finance facility as well as a fixed term loan or top up facility. For more information please view our EFG Scheme page.

Don’t just take our word for it…See our Client Success Stories

Airport Priority Cars - Lorraine Dancey - "Absolutely brilliant and always go the extra mile. We are very happy with Calverton.

The initial set up process was simple, smooth and managed really well. The online system is easy to use and gives us everything we need. Our team are brilliant and have supported us with our business growth - we consider the whole team as friends and wouldn't hesitate to recommend them to anyone”.

Phat Pasty - Laura Clark - “A wholly personalised approach, which is refreshing today. Calverton gave us the freedom to do what we do best, whilst their experienced team relieved some of the administrative burden and gave us a solution to improve our cashflow enabling us to grow our business.

The Calverton team totally understood our specific requirements from the start and tailored a flexible finance solution to suit us. The choice to work with Mark, Greg and team was the best one we could have made”.

To find out more information on how invoice finance can be more suited to your business please contact 01908 268888 or email enquiries@calvertonfinance.co.uk. 

Alternatively, Switch to Calverton