How does it work

A lender will give an approval for a business to access a certain amount of credit, which the business can then access whenever it needs to. Once a business is approved for an overdraft facility and amount, they are typically able to access funds within 24 hours of approval. The overall limit on this facility will be set by the lender and that limit is determined by business turnover and credit history factors.

Unlike other business loan facilities, a Business Overdraft is designed to be borrowed up to and can be there if required. Instead of borrowing $50,000 as a lump sum in the form of an Unsecured Business Loan, where you have to pay interest on the entire $50,000, you could get an overdraft with a limit of $50,000 and draw on that when you need it and only pay interest of the funds that you have actually used at that time.