As Banks reduce and even withdraw overdrafts from clients, we are pleased to be able to offer an alternative. Up to 50% of a business’s sales ledger (to a max of £50,000) is available within a matter of days via a new product from our friends at BFS.
Not everyone is aware – or rather they become aware too late – that a bank retains the right to demand repayment of a business overdraft at no notice. This means that overnight your business can be plunged into a cash-flow crisis. For this reason it is wise to not solely reply on a business overdraft to meet your cash flow needs but to have a variety of alternatives in place. As such the Flexidraft product is very useful. Among its features are:
- It can be arranged quickly, usually taking no more than a matter of days
- Up to 50% of your Sales ledger (up to a max of £50,000) can be made available to you
- As the amount available is linked to your Sales Ledger, it can grow and decline in line with your business cycles
What are the charges?
- There is a £500 set-up fee
- The amounts borrowed accrue interest at a rate of 1.5% per month
- There are no minimum fees
To set up a Flexidraft facility, please call us here at Choice Loans and we can process your application. To assess your suitability you will be asked for:
- Your company registration number
- A summary of your Sales ledger
- Details of your main Customers/Debtors
- A copy of your Management Accounts
- Your most recent Certified Accounts
The procedure for setting up this facility are that a Trust account is created in the name of your business and all sales go through it. From here you can transfer money online from the Trust account to your business bank account as required.
To apply for a small business overdraft with Flexidraft call us on 0845 1260350 and we can begin your application.