What is it?
An overdraft can be used for temporary cash flow and short term working capital requirements. It allows you to pay interest only on the amount you use and not on the full amount at which your limit is set.. It is linked to your Business Current account and can be used when needed, up to your set limit
What does it offer me?
- Convenience – once arranged, the facility can be used whenever it is needed
- Simplicity – there is no need to transfer funds from a separate loan account since the approved limit is loaded on to your Business Current account
- The facility remains available used (for the agreed period subject to review) even if it is not used.
- Affordability – an overdraft is one of the least expensive forms of short-term finance
- Flexibility – repayment terms can be negotiated with your relationship manager
- Interest is charged based on use
- An overdraft cannot be used for capital expenditure or to consolidate debt
- Evaluation is based on cash flow assessment
- Collateral is based on conditions of grant.
- Period is 12 months and is reviewed every year.
What do I need to apply?
- What documentation will the customer need?
- Ensure this is listed in point form.