Most new business owners will have started their operation with self funding and a small loan from the bank.  The intention should always be to keep solvent at all times but there can always be periods in a year when things don’t run quite so smoothly.  If there is a particularly tight phase and funds are not as fluid as would be helpful, then business overdrafts can prove to be a quick and flexible means of managing short term cash flow problems.  However, as with all short term loans, there is an element of higher interest and charges which can knock the budget figures out of the hat for a while.

Looking at all forms of business funding will be helpful before any such problem arises so that decisions can be made rationally and without knee jerk panic reactions.  A challenger bank for example is a financial technology operation which will compete with the traditional, established banking system by offering app based financial services.  Generally they offer innovative features and can offer lower fees by operating almost entirely online without branch services and thus saving huge outgoings concerned with such  overheads.    Not  having the overhead costs of traditional banking systems and the long established infrastructure, challenger banks offer financial services for lower fees and higher interest rates on savings.  They can also offer competitive pricing structures in other areas such as currency exchange.