Overdraft facilities
With an overdraft facility, your business may borrow up to a contractually set limit over a period specified in the agreement. The funds you borrow may be applied to any purpose. These facilities are usually granted for a period of one year.
How do you benefit:
these facilities allow you to remain liquid in the event of a temporary delay in funds receipt on your account; during the term of the overdraft agreement, outgoing payments from your current account can exceed your account balance
the facility is automatically repaid with your account receipts
easy access at all times to the loaned funds over the life of the facility - you decide how and when to spend the money
within the agreed limit, the amount borrowed is flexible, letting you decide on your cost of borrowing,
interest is accrued only on the amounts disbursed under the facility.
