Access to finance can allow you to pursue profitable growth or ensure that you don’t just make ends meet. While a small business loan is more suitable for a long-term investment, the overdraft is for a short-term business need.
With a loan, you want to cover the up-front cost of expansion – for example: the cost of machinery or raw materials. With an overdraft, you get the flexibility to ease your cash flow. This gives a certain relief when unforeseen circumstances arise, as it was the case for Jenny Pidial from Fit U Garment Ltd.
Pro-tip: Formulate a repayment strategy and ensure that you make your payments on time!
