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Overdrafts
The overdraft facility allows the borrower to have a negative balance on the current account in the respective currency. The overdraft is intended for meeting the short-term cash requirements of the business by providing the companies with immediate and easy access to funds at competitive rates to avoid delays when opportunities or unexpected expenses arise.
This facility is a perfect solution for businesses that require flexible, short-term financing. It covers the temporary cash shortages in the course of the day-to-day operations of the business and contributes to the better management of the cash flows of the companies, especially in case of expressed seasonality features. The short-term nature of the overdraft facility allows optimizing the interest expenses, which are accrued only on the utilized portion of this facility.
Overdraft limits are granted for a period of up to 3 years subject to annual reviews.
The interest is accrued on the utilized portion of the revolving limit, which allows the customer to optimize the cost of borrowing. Overdraft interest rate is determined by the same principle as for revolving lines.
