Financial institutions
- Business>
- Financial institutions>
- Financing and treasury >
- Overdraft Facility
Overdraft Facility
The overdraft is a cash facility that responds to permanent short-term working capital requirements. The bank authorises a company to have a debit balance on its current account. This liquidity reserve is available at all times.
Ø In principle, the minimum amount is EUR 125,000;
Ø the term is essentially unlimited but in certain cases there may be a fixed expiry date; and
Ø repayment of the sums drawn down is completely flexible. Interest is based on a variable rate and generally debited every three months.
