Overdraft: Difference between revisions
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imported>Doug Williamson m (Category added 9/10/13 and spacing) |
imported>Doug Williamson (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. | |||
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 == | == 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.
