Account overdraft - why is it worth it?

The first months of the company's operation may prove to be quite demanding in financial terms - an entrepreneur, instead of generating income, may need decent start-up support. In this case, a good alternative is an overdraft facility, which allows you to get additional funds quickly and almost painlessly.

Account overdraft as a bank loan

A debit line on a micro-entrepreneur's account is a good alternative to a classic loan. Unfortunately, not all banks are willing to provide this type of support to new entrepreneurs with poorly documented creditworthiness. In most cases, the business must have existed on the market for at least 24 months.

How does the overdraft on the account work?

The overdraft on the account is a specific debt limit that the entrepreneur can use from his corporate account. This means that even in the absence of funds, the taxpayer may use the account until the limit set in the contract is reached.

The amount of the overdraft on the account is renewable, in a way, i.e. the entrepreneur, by transferring funds to the bank account, reduces the amount of his debt. For example, in a situation where an entrepreneur has an overdraft account of up to PLN 20,000 and has so far used 15,000, and currently has transferred 4,000 to the account, PLN 9,000 is again at his disposal (previously PLN 5,000 + 4 transferred).