Overdraft

Overdraft is a loan for the stabilisation of the cash flow for a receiver of the loan in cases of obtaining working assets, delay of collections or contingency.

The limit of the overdraft shall be related to the current account of the client allowing the account balance to become negative. The source of repayment shall be the positive cash flow of the current business activities. The client can make credit payments in any sums within a fixed limit.

The minimum credit limit is 6400 EUR (100 138.24 EEK), the maximum limit depends on the monthly turnover of the applicant company in the bank. The price of the use of the overdraft consists of a limit fee to be paid quarterly in advance for the following quarter and an interest calculated on the sum used and to be paid at the end of each quarter.