Banks refusing SMEs overdraft facilitiesPublished on 10th February 2017
The SME community is still reeling as traditional high street banks increasingly turn their backs on them in favour of big business. Many SME businesses are facing an ever-greater challenge when it comes to acquiring overdraft facilities, a vital finance tool that grants businesses the ability to dip into an allowance during difficult periods. By being severed from this form of finance, business owners will experience an ever-increasing burden on their long-term sustainability.
However, as one door closes a dozen more open. The alternative finance industry has, once again, been working to fill the gap left behind by high street banks. Plus, with the help and support provided by companies such as Rangewell, many businesses who would have been left behind are now finding the perfect finance solution to suit their needs, including Revolving Credit Facilities.
Revolving Credit Facility
If you’re seeking to further aid your business’s ability to cope with short-term expenses, this form of finance can prove extremely handy. For those of you who have used bank overdraft facilities in the past, you will already be familiar with the workings of this product.
Revolving Credit Facilities offer your business access to an allowance, this time provided by a lender. Still under no obligation, you can withdraw money from the facility in order to pay bills, make essential purchases and so on. Any money you withdraw will be subject to interest. But, if you don’t take money out then you’ll pay nothing for that particular month. However, if you take out more than the agreed sum you’ll be hit with a penalty fee. In essence, such facilities act as a buffer for your business’s finances.
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