Lines of Credit
Business Lines of Credit allow for access to funds to cover overdrafts. With a Line of Credit, each time you withdraw funds in excess of your balance, your Current Account goes into an authorized overdraft, ensuring that issued cheques will be honoured. This protection is less costly than cash advances on credit cards. Obtaining a Line of Credit may require some form of security eg. frozen funds, mortgage and / or accounts receivable. Interest is charged only on the amount drawn (not the total limit of the line of credit) and only for the period of the existing overdraft.
