2 min read
How it works
An overdraft is a facility attached to your current account that lets you go into the negative up to a set limit. You pay interest and fees only on the overdrawn amount, so light use is cheap.
When it suits you
An overdraft is good for smoothing brief, unpredictable gaps — a customer paying a week late. For a sustained or recurring need, a dedicated facility or loan is usually cheaper and clearer. Living permanently overdrawn is a warning sign.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Is an overdraft expensive?
Only if used heavily or permanently. For short, light use you pay just on the overdrawn amount, which is cheap. A permanently overdrawn account is dear and signals a deeper issue.
Overdraft or facility, which is better?
An overdraft suits brief, unpredictable dips; a dedicated facility suits recurring needs and is often clearer and cheaper for sustained use.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.