bank
advance (overdraft)
The
traditional form of lending by banks and is an amount due to
the bank by the borrower through a trading account. The overdraft
varies from day to day, is at call, and the rate is calculated on the
daily balance and paid on the outstanding amount. The
overdraft rate dominates the cost of short term capital. Bank
advances are comparatively cheap and flexible but a commercial
customer should consider a business loan as an alternative.