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 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.