Overdraft

An overdraft is a Special loan provided by a bank that allows a you to pay for bills and other expenses when the account reaches zero. For a fee, the bank provides a loan to the client in the event of an unexpected charge or insufficient account balance. A business overdraft is a line of credit on your business bank account that gives you more short-term cash flow than your business can fund from its own capital. Where a business loan comes with fixed repayments and interest, a business overdraft charges interest only on the amount by which you're overdrawn