Business terms and jargon
explained. Your business dictionary
What is Overdraft
This is when you owe money to your bank through your current account.
Because of the nature of current accounts the bank may allow an account holder to take out more money than is in their bank account. This is called a bank overdraft facility.
There are two types of overdraft:
This is where the bank has agreed a limit that you can be overdrawn. They may charge interest or a dialy rate when your overdrawn.
This is where there is no agreement with the bank and there will be penalties
and high interest rate charged on the account.
<- Go Back
Business Terms Home page
Search jargon and terms database to learn more:-
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Term created / updated 2017-04-13 13:24:52
Knowledge is the key to success. That is why we have gone to great lengths to get you these business terms, and to explain them in Plain English so it is very easy to understand. Getting the right understanding and knowing your business jargon will keep you informed among your peers.
Copyright © 2004-2018 Scopulus Limited. All rights reserved.