Need flexible cash flow without relying on a traditional bank overdraft?
Compare business overdrafts, revolving lines of credit and working-capital facilities around how often you need to draw and repay funds.
- Compare limits, line fees, draw costs, repayments and security
- A revolving facility can suit recurring gaps better than repeated term loans
- Existing bank overdraft? Compare whether replacing it actually improves cash flow
Overdraft and line-of-credit products solve similar problems in different ways.
The useful comparison is not the product name. It is access, ongoing cost, draw cost, repayment rules and security.
| Feature | Traditional overdraft | Business line of credit |
|---|---|---|
| Access | Usually linked to a bank account | Separate revolving facility |
| Use | General working capital | General working capital / opportunities |
| Pricing | Interest plus possible facility fees | Interest and/or fees vary by lender |
| Availability | Subject to bank policy and review | Bank and non-bank options available |
Use a revolving facility for a recurring timing gap.
If the need is one-off and fully known, a term loan may be simpler. If the need repeats, reusable access can be more practical.
Draw during the busy build-up and repay as customer cash arrives.
Keep a buffer available for orders before sale proceeds arrive.
Maintain access without applying for a new loan every time.
Common questions
Is a business line of credit the same as an overdraft?
Both provide reusable funding, but the account structure, fees, repayment rules, security and lender policy can differ. Compare the whole facility.
Can I replace my bank overdraft with a non-bank facility?
Potentially. The right answer depends on the existing limit, utilisation, pricing, security, business cash flow and the alternative lender terms.
Ready to check the finance options?
Start with the amount, purpose and business profile.