Small overdraft

A small overdraft is a convenient tool to ensure stable cash flows when the company faces unexpected expenses, delays in collections or needs to acquire current assets. You can provide collateral for the limit of a small overdraft with a guarantee issued by the private people who own the company. Providing collateral does not incur any further costs.
  • The minimum credit limit is 1,000 euros
  • The maximum limit can be anything up to half of the company’s monthly turnover or 15,000 euros
  • The overdraft limit is linked to the current account of the company, meaning the account balance can become negative
  • The overdraft is repaid from positive cash flows from current business activities. Credit payments and repayments can be made for any amount within a fixed limit
  • Interest is only calculated on the used part of the limit.
  • There is no fee for signing a small overdraft contract

Requirements for an applicant for a small overdraft:

  • The company must be registered in the Republic of Estonia
  • The company must have been in operation for at least two years
  • The company must have made a profit during the last two financial years and it must be currently profitable
  • The company must have received regular transfers to its current account over the last six months at least
  • The applicant and the owners must have a clean record
  • The company may not have any payment defaults or tax arrears

You can give collateral for the limit of a small overdraft with a guarantee issued by the private people who own the company.

There are no further costs from giving collateral.

Documents required for a small overdraft application:

  • A loan application on the bank’s application form
  • The audited financial statements of previous financial years if the company is audited, and a balance sheet and profit and loss statement for the current year issued within the last two months
  • A statement of the bank account for the last six months
  • Additional documents if necessary