Overdraft Facility Arrangement
Overdraft Facility Arrangement
Short-Term Cash Flow Flexibility, Without Overcommitting to a Full Loan
An overdraft facility gives you a buffer for short-term gaps without the structure (or cost) of a full working capital loan.
Why Businesses Come to Us for This
Not every cash flow gap needs a full loan — sometimes a properly sized overdraft facility against your existing account is the more efficient, lower-cost solution. We help determine whether an overdraft is the right fit and negotiate the facility size and terms with your bank.
What's Included
• Assessment of whether an overdraft (vs. a term loan) fits your cash flow pattern
• Facility size and terms negotiation with your bank
• Documentation preparation and submission
• Liaison through to approval
Timeline
Typically 10-15 business days, often faster if arranged with your existing bank relationship. [TODO: confirm typical turnaround, especially for existing account holders]
Eligibility
Depends on your account history, cash flow pattern, and relationship with the bank — reviewed case by case.
Who This Is For
• Businesses with predictable short-term cash flow gaps (e.g. seasonal, payment-cycle timing)
• Companies wanting flexibility without committing to a full term loan
• Businesses with an existing account looking to add an overdraft facility
Our Process
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Cash flow pattern review — understanding the timing and size of your gaps -
Facility recommendation — overdraft vs. other financing options
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Application & negotiation — structuring the facility size and terms with your bank
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Submission & liaison — managing the process through to approval
Frequently Asked Question
- 01. How is an overdraft different from a working capital loan?An overdraft is a flexible buffer against your existing account, typically used and repaid as needed; a term loan is a fixed amount with a set repayment schedule. Overdrafts often suit short-term, recurring gaps better.
- 02. Do I need to already bank with the lender I'm requesting an overdraft from?Usually yes, or at least be opening an account with them as part of the arrangement — we'll clarify this for your situation.
- 03. Is an overdraft more expensive than a loan?It depends on how it's used — overdrafts are typically only charged on the amount and time actually drawn, which can make them cheaper for short, irregular gaps.