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Alternative overdraft facility
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Cash flow challenge: I need quick, flexible access to working capital without committing to a traditional bank overdraft.
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Perfect for: Businesses who want a more flexible and transparent funding option to manage short-term cash flow needs.
An alternative overdraft facility provides a rolling line of credit that works like a bank overdraft but with faster setup, simpler terms, and no hidden fees. It’s ideal for SMEs who want to smooth out cash flow, manage unexpected costs, or take advantage of growth opportunities.
Novuna helps you compare providers to find you a great deal.
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Pages in this SectionWhat is an alternative overdraft facility?
An alternative overdraft facility gives your business access to a pre-approved line of credit that you can draw on whenever you need it. Unlike a traditional bank overdraft, it’s usually provided by a specialist lender or platform meaning faster approval, flexible limits, and transparent fees.
The facility can be linked directly to your business bank account or operate separately through an online platform. You only pay interest on the amount you use, making it a convenient safety net for managing short-term working capital gaps.
For businesses facing unpredictable payment cycles or seasonal fluctuations, an alternative overdraft facility can be the difference between cash flow stress and steady operations. It’s funding on demand and ready when you need it, without lengthy applications or rigid banking criteria.
Advantages of an alternative overdraft facility:
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Flexible access to funds – Draw down money whenever you need it, without reapplying each time.
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Only pay for what you use – Interest is charged solely on the amount drawn, keeping costs efficient.
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Quick approval and setup – Alternative lenders typically process applications in days, not weeks.
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Transparent fees – No hidden charges or complex conditions like many traditional
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Improves cash flow stability – Helps manage fluctuations in income or unexpected costs with ease.
How it works with Novuna Business Cash Flow
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Tell us what you need funding for - complete a short form or call
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We compare providers and recommend a great fit for your situation
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You apply with full support from a cash flow expert
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Get up to 90% of the invoice value within 24-72 hours
Fast decisions. Flexible options. Funding over £2bn to more than 1,000 SMEs every year.
Is an alternative overdraft facility right for you?
You need flexible, short-term access to working capital
Draw funds as needed to manage cash flow gaps or sudden expenses.
You want a faster, simpler option than a traditional bank overdraft
Fintech and specialist lenders provide quicker decisions with less red tape.
You prefer transparent pricing with no long-term commitment
Pay only for what you use, without ongoing fees or annual renewals.
If that sounds like your business, we’ll help you compare lenders and secure a facility that works for you.
Novuna can support businesses with a range of funding challenges
I want a fixed term loan for larger costs
I want funding that grows with my sales
I want short-term working capital support
How we help
How Novuna helps businesses access funding fast
Tell us what you need
Start with a simple form or call - tell us your business challenge.
We compare your options
We compare multiple providers to get you a great deal.
Choose the right solution
We’ll help you decide whether a one-off facility or a longer term option suits your goals best.
Apply with expert support
Get help applying - with a real expert on hand throughout.
Get clear, transparent terms
No jargon, no surprises - just honest advice with no hidden fees.
Receive funding fast
Get access to finance quickly so you can focus on your business.
Why take action now
Don’t let cash flow fluctuations limit your potential
Maintain stability during quiet trading periods.
Take advantage of new opportunities with quick funding.
Reduce financial stress with flexible access to capital.
Why choose Novuna Business Cash Flow?
We're highly rated by our existing customers
"The communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll.'
More reviewsWe're a multi-award winning business cash flow specialist
Innovation in the SME Sector 2024
Alternative SME Lender of the Year
SME Lender of the Year 2023
Best Use of Technology 2023
Best Provider 2023
What funding looks like in your sector
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How does an alternative overdraft facility differ from a bank overdraft?
Unlike a bank overdraft, this facility is secured and independently funded, not tied to your main bank account. It often offers higher limits, longer terms, and fewer eligibility restrictions.
How does an alternative overdraft facility work?
It functions like a revolving credit facility. You can access funds as needed, pay interest only on the amount drawn, and repay or reuse the balance during the facility term typically one to two years.
What are the benefits of an alternative overdraft facility?
- Fast access to working capital
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Flexible drawdowns and repayments
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Secured lending against property or other assets
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Alternative to bank restrictions for businesses needing rapid liquidity
Who can use an alternative overdraft facility?
It’s suitable for UK businesses and property investors that require ongoing access to capital for example, to fund development projects, manage cash flow, or act quickly on new opportunities.
