Difference between revisions of "Overdraft"

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m (Category added 9/10/13 and spacing)
(Expand to note use of overdrafts for medium-term financing.)
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A line of credit which is applied to a current account and may be drawn on demand.   
 
A line of credit which is applied to a current account and may be drawn on demand.   
  
It is also known as a demand loan, as it is repayable to the bank on demand.
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 +
It is also known as a demand loan, as it is repayable to the bank on demand by the bank.
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 +
For this reason, it is risky to use overdrafts for core financing needs.
  
  
 
== See also ==
 
== See also ==
 
* [[Bridge financing]]
 
* [[Bridge financing]]
 +
* [[Concentrate]]
 
* [[Revolving credit facility]]
 
* [[Revolving credit facility]]
 
* [[Round tripping]]
 
* [[Round tripping]]
  
 
[[Category:Liquidity_management]]
 
[[Category:Liquidity_management]]

Revision as of 10:58, 3 February 2018

A line of credit which is applied to a current account and may be drawn on demand.


It is also known as a demand loan, as it is repayable to the bank on demand by the bank.

For this reason, it is risky to use overdrafts for core financing needs.


See also