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An Overdraft is a form of credit facility by which a customer may be allowed to draw beyond the deposits of its current accounts for the sole purpose of the day-to-day operational needs of a viable, ongoing business. An overdraft facility is normally approved to bridge the short-term cash deficit that arise in businesses between receipt of funds from debtors/receivables, cash sales and the disbursement of funds to creditors/payables and expenses. The applicant of overdraft needs to operate a current/checking account at the lending branch of the Bank and the account performance shall be good. The nature of the business the applicant engagedin shall a involve day to day transaction.
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