That's right.
- An Overdraft creates a safety net for businesses by allowing them to withdraw extra funds up to their approved limit. It is an ongoing line of credit with no set repayments. This means minimum interest payments can be made on a regular basis and the rest can be repaid later, when the business has more cash flow.
- Pricing for an Overdraft will include an establishment fee, line fee and an interest rate to cover the cost of funds, operating costs, capital charges, expected loss and risk-adjusted returns.
Overdraft
Rate Build-Up
Rate
Not quite.
A Better Business Loan is a term loan with a set repayment structure. It is not the ideal solution for this particular business.
Not quite.
A Business Credit Card is personally secured and can be used for cash-flow needs, but as it usually incurs a higher purchase and cash advance interest rate, it is not the ideal solution for this particular business.
