Business Overdrafts | Pluto Capital

What is an overdraft?

An overdraft is a credit facility attached to your everyday business transaction account. It allows you to go into a negative balance (take out more cash than you have) and use the bank’s money as credit.

An overdraft facility lets you use the bank’s money for the day-to-day running of your business.

An overdraft can ease fluctuations in your cash flow by providing instant cover for unexpected expenses or larger orders. It can also help to cover the time between a sale and a payment.

What do I need to get this type of finance?

Property as security, or
A good history and relationship with your bank

The features of an Overdraft
Loan Amounts	Upwards of $5,000 depending on business history, profitability and security circumstances
Security Requirements	Both unsecured and secured overdrafts are available. Security is generally property (house, land, commercial premises)
Loan Terms	Many lenders have no minimum or maximum terms
Repayment Terms	No fixed repayment amounts or frequency
Indicative Interest Rate	Secured 8-12% Unsecured 18-30% Fees and administration charges will apply

What are the benefits of an overdraft?

Connected to your everyday business banking account — no separate loan facility
Access extra funds at any time through your normal banking system
No set repayment times or amounts — your cash flow automatically repays the loan
Provide confidence you can meet your expenses even if a customer is late with a payment
Only pay interest on the funds used

Check out these similar products:

Short Term Unsecured Loan Business Credit Cards