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    Notes Overdraft

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    Kathleen Henry
    An overdraft is an agreed limit and must be paid if the bank demands for repayment. Overdrafts are commonly used to support working capital. Bank has the flexibility to review the customer's overdraft facility per periodically and perhaps agree to additional facilities or insist on a reduction in the facility.

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    Notes Overdraft

    Uploaded by

    Kathleen Henry
    37 views3 pages
    An overdraft is an agreed limit and must be paid if the bank demands for repayment. Overdrafts are commonly used to support working capital. Bank has the flexibility to review the customer's overdraft facility per periodically and perhaps agree to additional facilities or insist on a reduction in the facility.

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    An overdraft is an agreed limit and must be paid if the bank demands for repayment. Overdrafts are commonly used to support working capital. Bank has the flexibility to review the customer's overdraft facility per periodically and perhaps agree to additional facilities or insist on a reduction in the facility.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    37 views3 pages

    Notes Overdraft

    Uploaded by

    Kathleen Henry
    An overdraft is an agreed limit and must be paid if the bank demands for repayment. Overdrafts are commonly used to support working capital. Bank has the flexibility to review the customer's overdraft facility per periodically and perhaps agree to additional facilities or insist on a reduction in the facility.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    FIA/FFM Notes Overdrafts

    11/22/2011 3:16:00 PM

    An overdraft is an agreed limit and must be paid if the bank demands for repayment. This is a term of short term borrowing. An overdraft is commonly used to support working capital. Advantages of Overdraft 1. Customer has a flexible means of short term borrowing. 2. An overdraft is considered to be support for normal working capital 3. Customer only pays interest when he is overdrawn 4. Bank has the flexibility to review the customers overdraft facility per periodically and perhaps agree to additional facilities or insist on a reduction in the facility. 5. Overdrafts can do the same job as a medium term loan the facility can be renewed each time it come up.

    11/22/2011 3:16:00 PM

    11/22/2011 3:16:00 PM

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