Overdraft

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Overdraft

Purpose of overdraft is financing for general working capital needs of a business. Overdraft service provides an opportunity to execute payments up to a certain amount limit, even if there are no funds in the bank account.

Advantages:

  • No periodic repayment
  • Limit is granted in borrower‘s bank account
  • Automatically covered with credited funds in the account
  • Interest paid only on the used amount
  • No paperwork with disbursement or repayment

Conditions

  • Finacing amount from 50‘000 to 2‘000‘000 Eur
  • Agreement term – 12 months
  • Interest rate – fixed or floating with reference to 6 month EURIBOR + bank‘s margin
  • Repayment – at maturity
  • Collateral – unsecured, or secured with mortgage on real estate, pledge of fixed assets, inventory, accounts receivable, personal surety or corporate guarantee

Frequently Asked Questions

What is overdraft?

An overdraft is a short-term financing, usually intended to cover the expenses of a company when its bank account does not have sufficient money to make current payments.

How to get an overdraft?
In order to receive an overdraft, the company must submit certain documents to the Bank. After assement of the application, the bank decides what credit limit can be granted.
Why it is usefull to choose overdraft?
The main advantage of having an overdraft facility is that this service gives the company the ability to obtain funds in unforeseen situations.
What documents are required to apply for financing
When applying for financing following documents have to be submitted:
– Filled loan application
– Latest annual report and interim report of the current financial year
– Description of the needs of the loan
– Financial projections
– Valuation report of a property if real estate is offered as collateral
What are the fees and commissions for lending?
Usually there are interest rates calculated for using an overdraft.

 

You can find the fees and commissions which are applicable for EMBank lending products:

Service or transaction Fee, EUR
1 Administration fee for concluding Loan agreement From 0,5% of the amount of the Loan (min. 200 €)
2 Fee for increasing the amount of the Loan From 0,2 % of the total outstanding amount (min. 200 €)
3 Fee for extending of the maturity of the Loan From 0,5 % of the outstanding amount of the Loan (min. 200 €)
4 Fee for other amendments of the Loan agreement From 0,1 % of the outstanding amount of the Loan (min. 200 €)
5 Commitment fee From 1 % of the unused amount of the Loan
6 Fee for early repayment of the Loan 2 % of the outstanding amount of the Loan to be repaid (min. 200 €)

 

Other fees:

7 Issuance of the permission to pledge collateral by subsequent pledge 0,5% of the amount of the Loan (min. 300 €)
8 Other permissions and consents 50 €
9 Documents issued by Local customer request 50 €

If you want to hear more about our overdraft options,

Other Lending Options at
EMBank

We know that one size does not fit all, so we are working hard providing you various options to choose from. Let’s talk about how we can help you accelerate your business with the correct type of loan offering.

Working Capital Loans

Short-term loan to cater to your immediate working capital needs.

Credit Line

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Investment Loans

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Leasing

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Need a Different Loan?

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