Overdraft Replacement: Instant access to the funds you need

Cost-effective short term business funding that can do much more than a traditional overdraft

Speak to one of our experts020 4525 5312

Funding options


Cost effective

  • Short term funding facility
  • Cash for any purpose
  • No cost for providing facility
  • No impact on existing bank credit

Easy to use

  • Individually agreed limits
  • Adverse Credit – no problem
  • Rolling facility
  • Funding available on demand

A valuable extra business asset

  • Valuable asset for your business
  • Independent line of credit
  • Scaled to suit your business
  • ideal for stock and incedental costs

Talk to Rangewell – the business finance experts

Most businesses need access to short term cash - but the traditional overdraft is a dying breed. We know the lenders with new ways to deliver the funds you need.

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

When your business needs short term cash, an overdraft is probably not going to provide an answer.

Overdrafts used to be the most common form of everyday business funding.They were provided by your bank, and your overdraft facility would be agreed as part of your business banking arrangements.

It would let you withdraw cash that you didn’t have in your account, to use for a few days or a few weeks, as a buffer against cashflow slowdowns, or to deal with larger expenses. Your bank would only charge you for the cash you withdrew, and for the time you used it.

But when the credit crunch hit, the banks reduced or removed the overdrafts they extended to small businesses - leaving you with no way to access funds for the short term.

Fortunately, the Alternative Finance market has grown to plug the gap. Today there are a number of new funding solutions that can help offer the easy access to short-term funding that used to be provided by overdrafts. The simplest of these is Revolving Credit, also known as Overdraft Replacement or Alternative Overdraft Funding.

How Alternative Overdrafts work

Alternative Overdrafts are provided by a number of lenders, and offer instant access to funds, just like an overdraft, although no bank account is involved.

Instead, the alternative overdraft provides a line of credit with a limit agreed when you apply. This limit is usually based on your past income.

It is then up to you how much of this reserve of credit you draw down. Like an overdraft, the facility will only mean a cost to you when you actually use the facility, based on the amount you draw down, and the time which you hold it. You can repay at any time, and the funds will be ready for use again.

This can be a useful additional source of funding if you need access to small cash sums for short periods, for purposes such as buying in stock - although in practice there are no restrictions on how you use the money.

If you want to fund growth or to deal with temporary cash flow shortfalls, it can provide the ideal solution.

Rates will vary between providers and will also depend on the level of funding agreed. Both secured and unsecured arrangements can be provided, with those arrangements secured on assets usually offering more attractive rates.

Why you need Rangewell to arrange an overdraft replacement

Overdraft Replacement funding has become a very common financial solution, but some suppliers may demand high interest rates for the cash you need.

Getting a competitive solution for your facility is essential. Lending decisions and rates are based on risk. You need a lender that knows your business and the sector that you work to get the facility you need at the most competitive rate.

At Rangewell, we can help. We know the lenders who have knowledge of your sector and our team of business finance experts can work with you to understand the real issues that you are facing that are causing you to need a Working Capital Loan. They can help you find lenders who work in your sector and use their understanding of your business to help you secure the most competitive deal.

Our expertise works for you. We can discuss your objectives, and help find answers scaled to fit your turnover and your other obligations.

​​​​​​Why you should call us now

Preparing an alternative overdraft before you need it is a prudent way to safeguard the future of your business, and increase the financial resources you can call on.

Arranging a facility will cost you nothing if you don’t draw down the cash – but simply knowing you have a financial resource could mean valuable peace of mind, and increase the flexibility of your business.

Call us now.

Discover our range of finances

Every type of finance for every type of business

Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.

Helping you build your profits

  • The cash you need when you need it
    Overdraft replacement gives you a revolving credit facility that allows you to call on a reserve of funds if and when you need it. Once agreed, the cash is ready and waiting for you to call on.
  • Cash for any purpose
    You can draw down cash for any purpose - buy stock, fund new equipment, or deal with temporary cash flow issues.
  • An independent source of finance
    Unlike a traditional overdraft, your bank is not involved. Your overdraft replacement provider may offer the facility under their own, more flexible, criteria.
  • Cost-effective funding
    Because overdraft replacement gives you a  reserve of funds that you can call on only if you need to, it can be a cost-effective way to raise short-term finance. You pay only for the funds you take out.
  • Flexible finance
    A revolving credit arrangement lets you draw out funds as you need them and repay when convenient - on the same day if you wish. Once repaid, the funds are ready for you to use again.
  • Easy to arrange
    Application is straightforward, and a decision can sometimes be made in days, with access to credit available immediately.

Download Rangewell’s free and detailed guide to Overdraft Replacement

How does Overdraft Replacement work?

What are the real costs?

Is Overdraft Replacement a type of short term finance?

How can Overdraft Replacement help my business?

Why you must find the right lender to cut costs

The Downsides of Overdraft Replacement

What paperwork you need?

Am I charged fees which are similar to traditional overdraft fees?

Guarantees and security

Is it important to choose a lender who is authorised by the prudential regulation authority and regulated by the financial conduct authority and the prudential regulation authority?

How does it work - do I repay what I borrow by direct debit or standing order?

Key Terms to check

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There’s a limit on advancesThe amount you can borrow under an overdraft replacement facility is limited to the amount agreed initially. With some lenders this may be based on your monthly turnover.
Costs may be highThe provider will charge a fee which may be relatively high if you use the funding for more than short periods.
Not available for all businessesSome types of business may not be offered an overdraft replacement. Call the Rangewell team to see if we can find a solution for you.

Our service is:


Transparent and independent, treating all lenders equally, finding the best deals.


Every type of finance for every type of business from the entire market - over 300 lenders.


Specialist Finance Experts support you every step of the way.


We make no charge of any kind when we help you find the loan you need.