Over drafts

• What do overdrafts allow businesses to do?

  Withdraw more money than available in account
• How do overdrafts help businesses manage cash flow?

  They allow timely payments despite low cash
• What is a potential downside of using overdrafts?

  Higher interest rates compared to other loans
• What can banks do regarding overdrafts?

  Cancel overdrafts at any time
• What happens if an overdraft is not paid off?

  Bank can take some of the business's assets
• Why might a business choose to use an overdraft?

  To ensure payments are made on time
• How do overdrafts compare to other loans?

  Overdrafts usually have higher interest rates