Article 21

Invoice finance vs overdrafts

A bank overdraft is when someone or a business is able to spend more than what is actually in their bank account. If there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft limit, then interest is normally charged at the agreed rate. If the negative balance exceeds the agreed terms, then additional fees may be charged and higher interest rates may apply.

A bank overdraft is a type of intentional short-term loan as the money is technically borrowed, the associated fees are accepted and the overdraft covered with the next deposit. Overdrafts are a source of working capital financing for many businesses.

Business overdrafts


You pick and choose the invoices you want to finance. Scales with your business.

Fixed amount added to your costs and inflexible repayment schedule.


Simple fee structure. Pay interest only on what you need.

Fixed interest rate and other hidden admin charges.


Apply online in just 15 minutes.

Lengthy application process and waiting for a decision.


Log in anytime to see your account or speak to your dedicated account manager.

Paper statements and customer service call centres.

Want to find out more?


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