What is a corporate overdraft (debit current account)? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is a corporate overdraft (debit current account)?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

It is a credit facility the bank places in the company's account, allowing it to draw amounts exceeding its actual balance in order to meet its daily obligations, repaid from sales proceeds. Interest is calculated daily on the drawn amount only, and the facility is renewed annually.

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