Overdraft Accounts are current accounts with authorized limits used by businesses or entrepreneurs for working capital management.
The size of the overdraft facility, the security provided by the borrower (business assets, personal guarantees provided by the directors or third-party guarantees, covenants etc), the financial standing of applicants as well as the overdraft turnover, are all taken into consideration in the decision for granting or maintaining the overdraft facility from then on. The timeframe for assessing applications for overdraft facilities varies based mainly on the readiness of the company to submit the requested information for evaluation.
Interest charge on the accounts applies twice yearly and is calculated based on the daily utilization of the limit, at a rate agreed with the Bank. The overdraft account additionally bears maintenance fees, interest charged on arrears where applicable, charges for the utilization of uncleared funds, fees related to the provision of professional services and any other expenses related to the operation of the account.
The overdraft limit is renewed on an annual basis and is repayable on demand by the Bank.
Each account is assigned to a Client Relationship Officer who is always there to assist you through the application process and operation of the overdraft thereafter.
Advantages of Overdraft accounts
- suitable for short-term borrowing needs
- improved financial flexibility to overcome a company’s cash requirements
- immediate access to funds once the facility has been approved
- no penalty on prepayment
- assistance on cash flow management to mitigate business risks by providing interest paid only on the utilized balance
- interest and arrangement fees are normally tax deductible
- it provides full transaction capability with various facilities (cheque book, electronic banking, cards etc)
Disadvantages of Overdraft accounts
- interest charged for the period is not predictable, as it depends on the daily utilization of the limit and variations in the interest rate
- overdrafts are repayable on demand
- failure to operate the account as per the directives of the Bank can result in a decrease in the client’s credit score, increased interest rate charges for existing and future borrowing, seizure of collateral and legal action against the company
- company’s Directors are liable for transactions operated under the account
How to apply
Applicants are required to complete and submit the following:
- The Credit Facility Application Form
- The Personal Financial Statement (PFS) / Personal Financial Statement (PFS)-Greek. Where applicable, the PFS must also be completed by all guarantors/security providers
- The relevant checklist for Legal Entities, Physical Entities or Project Finance
For the evaluation of an overdraft facility request, all above documents must be submitted to the Bank.
- Existing clients may contact their personal Client Relationship Officer (CRO) and communicate their request through email, mail or fax
- New clients have the option of contacting one of our experienced CROs to guide them through the process or by directly submitting their initial request through email, mail or fax
|Credit Facility Application Form||Download|
|Personal Financial Statement (PFS)||English Greek|
|Checklist for legal entities||Open|
|Checklist for physical entities||Open|
|Checklist for project finance||Open|
Loans | Overdrafts | Trade Finance
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