Business Overdraft

A business overdraft is a revolving facility that is connected your business account. Overdrafts can be both unsecured and secured. Business owners use type of facility when the amount of funds needed exceeds what is in their business trading account.

Borrow from $2,000 to $500,000
Termsup to 24 months
Same Dayfunding possible
Limitscan increase as repayment history is established

What is an Unsecured Business Loan?

A Business Overdraft is a facility that is connected to a business banking account that allows the business to access funds that are greater than the amount that is in the business account.

How does it work

A lender will give an approval for a business to access a certain amount of credit, which the business can then access whenever it needs to. Once a business is approved for an overdraft facility and amount, they are typically able to access funds within 24 hours of approval. The overall limit on this facility will be set by the lender and that limit is determined by business turnover and credit history factors.

Unlike other business loan facilities, a Business Overdraft is designed to be borrowed up to and can be there if required. Instead of borrowing $50,000 as a lump sum in the form of an Unsecured Business Loan, where you have to pay interest on the entire $50,000, you could get an overdraft with a limit of $50,000 and draw on that when you need it and only pay interest of the funds that you have actually used at that time.

What are the benefits of an Unsecured Business Loan?

A business overdraft can provide your business with a number of benefits, including the following:

1. It can help you to cover unexpected expenses.

2. It can provide you with extra cash flow if you need it.

3. It can help you to keep your business running if you experience a cash shortfall.

4. It can give you peace of mind knowing that you have a backup plan in case of an emergency.

When should you consider a Business Overdraft instead of a traditional business loan?

There are many times when it makes sense to use a business overdraft instead of a business loan. Some of the most common reasons include:
1. You’re not looking to pay interest on an entire lump sum

2. It can operate as a backup plan in the event that there are cost overruns

3. Business Overdrafts can be more flexible and accommodating of your business circumstances

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