A Business Overdraft product can provide your businesses with access to a line of credit that can be used to cover short-term funding needs. An overdraft is a flexible form of credit that allows businesses to withdraw funds from a pre-approved credit limit as and when they need to.
The way it works is that a business applies for an overdraft facility with SHIFT finance and, if approved, is provided with a credit limit based on the business’s financial history, creditworthiness, and other factors. The business can then draw on this credit limit as needed, up to the approved amount, and repay the funds when cash flow allows.
A Business overdraft product has several features that make it a positive funding option for businesses. These features include:
- Flexibility: An overdraft is a flexible form of credit that can be used to cover short-term funding needs, such as unexpected expenses or seasonal fluctuations in cash flow.
- Speed: Once approved, businesses can access the funds quickly and easily, making an overdraft an ideal funding option for businesses that need access to cash quickly.
- Cost-effective: An overdraft is typically less expensive than other forms of short-term financing, such as a business loan, as interest is only charged on the amount borrowed and for the duration of the time it is used.
- Repayment: Overdrafts are typically repaid when the business has the funds available, making it a flexible and manageable option for businesses.
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If you have any questions or would like to get more information about a Chattel Mortgage, email us and one of our experienced finance consultants will contact you shortly.
