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Overdrafts

Overview

A pre-arranged overdraft provides an established line of credit on a customer’s operating account for a short period, with interest charged at a variable rate.

Small businesses will benefit from protection against anticipated cash shortfalls, when they may be required to make payments before sufficient revenues are available.

 

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Key features and benefits

  • Availability of financing for short-term needs (one year and then renewable)
  • Payments can be flexible
  • Credit line of BMD/USD5,000
  • Flexible terms
  • Variable HSBC commercial base rate charged daily to chequing account

What you should know before you apply

  • A spread reflective of the risk, size and term of the loan is added to HSBC's commercial base rate
  • A service fee of two per cent for small businesses and one per cent for a larger business line