Overdraft Facility

Overdraft Facility

A short term loan that a bank makes to a business automatically if that business otherwise would face an overdraft. For example, if a business has $10,000 in the bank and withdraws $12,000 for its payroll, an overdraft facility is an automatic loan for the extra $2,000. The overdraft facility is payable on demand and, as with most loans, the business must pay interest on the amount borrowed.
References in periodicals archive ?
Causing and permitting the Company to seriously misrepresent and overstate its vehicle stock valuations from 31 December 2011 to 31 May 2012; and from 31 July 2012 to 25 October 2012 in order to obtain and/or maintain an overdraft facility with the bank, to which it was not entitled, as the actual stock valuations were less than that required by the conditions of said overdraft facility.
I've approached my bank but they won't give me a loan or an overdraft facility.
Global Banking News-May 20, 2015--State Bank of India launches overdraft facility
With the completion of the refinancing, the new loan facility now consists of a 11 million Kuwaiti Dinars short-term loan and overdraft facility and a 140 million Kuwaiti Dinars long-term loan to be repaid in seven years.
The overdraft facility (1) policy from private financial institutions provides financial support to increase firms' accessibility to private financing sources.
ALAN PARDEW admitted that had Newcastle pulled off a "marquee signing" during the window the transaction would have taken the Magpies into their overdraft facility.
Understanding how you spend your money will help you decide which type of overdraft facility will work best for you and if that account comes with a PS12 saving incentive, all the better.
The standard account will offer an overdraft facility at 14.
Perhaps most shocking of all is the fact that the survey suggests around a third of small Welsh businesses were unable to secure an overdraft facility from their bank.
Mashreq's Auto Loan bundle offers customers a free first-year Platinum Elite Credit Card, free Overdraft facility, free Current Account, competitive insurance rates and Salm Points that can be instantly redeemed at over 1,000 retail stores across top brands.
The limited period offer is valid until the end of the year and offers competitive interest rates, first year-free credit card across Mashreq's unique cards segment and a first year-free overdraft facility.
It is, therefore usual for the Provincial Government to resort to utilization of overdraft facility in the month of June to finance expenditure on development activities as well as to make payment of salaries, he said.