Most Russians know the concept of a loan, which cannot be said about overdraft. This is a special service that banks provide to holders debit cards. In some cases, connecting this option becomes an alternative to lending.

What is overdraft

This service is available to both individuals and legal entities. As a rule, banks open credit overdraft salary card holders. This type of loan has many advantages if used wisely. Overdraft - what is it? in simple words? This is an opportunity to receive the missing funds to make a payment or pay for a purchase. For example, a client in a supermarket has purchased goods in an amount exceeding the balance of his funds. plastic card, but the bank allows him to “go into the red” and pay for everything.

Translated from English, the term overdraft means overspending Money. The option is provided only after signing the corresponding agreement with the bank. As a rule, the limit of such a loan is small, as is the repayment period. Banks also provide clients with Grace period(grace), when interest is not accrued for the use of borrowed funds (up to 30 days). After this, the debt increases at the consumer loan rate. The limit is calculated for clients individually, depending on income and other things.

Overdraft for legal entities

This type of lending is very beneficial for enterprises that have entered into an agreement with a financial institution for the collection of proceeds. Overdraft for legal entities- this is the excess of the cash balance when committing expense transactions. For example, a company urgently needs to transfer money for a new supply of equipment, and current account some amount is missing. The bank adds funds to make the payment, and then debits them back when the money arrives - along with interest.

The service is provided upon the client’s application by the bank in which the organization has an account. Overdraft lending helps legal entities maintain cash flow and pay bills on time. There are several types of this service:

1. standard;
2. advance (for reliable clients);
3. for collection (with a turnover of collected revenue of at least 75%).

Technical overdraft

If the holder of a salary or classic debit card spends all of his money, going beyond the limit provided, an unauthorized overspending occurs. If the same conditions apply within the agreed loan, then for a technical overdraft you will have to pay interest that is increased several times. For example, for simple overspending, the rate is 18-20%, and for unauthorized overspending, up to 45-60% is charged. In this case, the debt should be repaid as soon as possible to avoid a fine.

An overdraft loan has a strict limit, but unauthorized overdraft can occur in the following cases:

1. Payment with a ruble card for purchases in dollars or euros. When converting, the overdrawn amount may exceed the limit.
2. Unconfirmed transactions. The client paid for one purchase with a card, after which the financial institution debited the funds for another transaction.
3. Technical failure in the system.

Overdraft limit

The amount of funds recalculation may differ for each client, because the limit is set individually. The conditions are stipulated when drawing up the contract, when the holder of a salary or debit card decides to activate this option. The overdraft limit is set after consideration of the application, depending on the client’s income and the turnover of funds on the card. For example, Sberbank of Russia provides individuals with overspending in the amount of initially up to 30 thousand rubles, after which the limit may increase.

Overdraft interest

As a rule, financial institutions provide for overpayments of more than for overdrafts. consumer programs. What overdraft interest will be set depends on the tariffs of a particular bank. If you are late in paying your debt, additional fees will apply. The approximate rate for this type of lending is 15-25% depending on financial institution. In addition, overexpenditure has a limited period - no more than 12 months.

What is an overdraft at a bank?

Modern financial organizations offer the population various types of lending to attract customers. Bank overdraft is an opportunity to spend more money than what is in the account of an individual or enterprise. When funds are received, debt and interest are written off. Each financial institution offers its own conditions. Salary and debit cards with overdraft can be issued at Sberbank, VTB 24 and other large banks in the country.

When connecting to the service, the lender sets a limit on overspending. You can use it an unlimited number of times, since the line is renewed constantly after the debt and accrued interest are written off. If desired, the service can be disabled by submitting a corresponding application to a branch of the financial institution.

What is an overdraft at Sberbank

This financial institution provides the opportunity for private clients and businesses to overspend money on current accounts when connecting to the appropriate service. Thanks to this, if you don’t have enough credit on your card, you can pay for a purchase, and the debt will be written off automatically when credited. The most attractive conditions are available to individuals and legal entities who have a large turnover of funds on cards and accounts.

You can connect such a loan in rubles, dollars, euros. However, there are differences in interest rates: 18% ( National currency), 16% (foreign). Overdraft at Sberbank for individuals open with an average limit of 30 thousand rubles. Specific numbers are calculated loan officer financial institution, analyzing the client’s solvency. It is important to pay off the debt no later than two months after it was incurred.

Overdraft VTB 24

All owners of salary and debit cards, which regularly receive income, can sign up for this service. Overdraft VTB 24 is opened for an amount of at least 10-15 thousand rubles. Maximum size overspending is determined individually, taking into account the client’s solvency. If a corresponding agreement was previously concluded, then a loan in case of overspending will be allowed - with a tariff of 20%. Technical or unauthorized - an undesirable phenomenon in which the bank charges 50% and late fees.

Alfa Bank overdraft – conditions

This financial institution provides the opportunity to “go into the red” for debit card holders and corporate clients with good credit history. Fast processing with a minimum package of papers is what Alfa Bank offers; an overdraft is opened in the amount of up to 6 million rubles (advance) and up to 10 million rubles (personal offers). The loan rate is calculated taking into account many factors and is 13-14%. It is worth noting that for connecting the service the bank charges a commission of at least 10 thousand rubles (1% of the limit).

Video: overdraft card

The term overdraft for legal entities is widely used in the banking industry.

Any entrepreneur, enterprise intending to use a loan for their economic activity It is extremely important to have a clear understanding of all the intricacies of this financial and legal term.

What it is

Overdraft is the excess of the client’s expenses over the balance of funds on his bank account. The deposit can be regular, or in the form credit card. The client can be an individual or legal entity. The definition of the term from a legal point of view is given in.

A legal entity can receive this service by directly concluding an agreement with the servicing bank, which contains a description of the procedure for using a current account. For example, counterparties can freely transfer money to it, and the client himself can pay his expenses even when the account limit is exceeded.

Overdraft is a bank service; it is not provided without an appropriate agreement.

The overdraft amount is always limited to a certain amount. The client can freely transfer funds to other accounts until the overdraft amount is exhausted.

With any receipt of money into the current account, they first go to repay the overdraft, taking into account the interest that is determined by the terms of the agreement for the use of borrowed funds. For any legal entity, the overdraft service is a matter of convenience, since any invoice issued by the counterparty can be paid on time, avoiding delays in fulfilling the obligation.

There are several types of overdraft for legal entities:

• standard;
• in advance (only for clients with an impeccable reputation);
• for collection (for clients with a current account loan turnover of 75% of collected revenue and above);
• technical (against already registered and guaranteed receipts to the client’s current account from his partners, allowed).

In each case, depending on the specific type of business (services, trade, etc.), the bank client is provided with the type of overdraft that is optimal for both parties. The lender always guards its interests, and therefore strives to offer the legal entity the least risky option.

Lending terms

According to the standard overdraft scheme, legal entities are provided with an overdraft on a contractual basis for a period of up to 1 year. The maximum borrowing amount for each client is determined individually, and can reach 70% of the average turnover on the current account.

The loan is repaid every day. And it is carried out automatically from any funds received into the borrower’s current account until the overdraft is closed.

There are two types of lending for legal entities:

• without collateral;
• with collateral.

The first type is also called blank, and the second - with collateral. A client with an excellent credit history can get a blank loan from this bank.

Interest rate for the use of borrowed funds directly depends on the borrowing period. Typically, for short periods (up to 1 month), the interest rate is low, but if it is exceeded, it rapidly increases several times.

In addition to interest on the loan, the bank may charge various fees:

• for consideration of the application;
• for opening an account;
• for conducting personal business;
• for support of the loan provided, etc. (clause 1).

This is why it is important to carefully study the full text of the agreement, since simple bet may not fully reflect the true picture. The range of bets depends on the type of currency.

Foreign companies charge much lower fees than domestic banking organizations. If the loan is provided on the security of real estate, then according to loan agreement subject to mandatory registration.

Requirements for borrowers

The final list of requirements for the borrower is determined individually by the credit institution that provides the loan. However, it is worth recognizing that there are General requirements, recognized by all lenders as important and binding.

These include:

1. Providing reliable information about the turnover of a legal entity for a certain reporting period(for six months, a year).
2. Opening a current account in this bank for an amount equal to or greater size limit overdraft (secured loan).
3. When opening an account without collateral, it is created no less than six months before the expected date of opening the overdraft. All this time, the future borrower demonstrates the stability of his financial situation. In particular, funds must be received into the current account at least 12 times a month.
4. The total work experience in this area of ​​the legal entity must be more than 1 year.
5. At the time of opening an overdraft, the client should not have any unpaid orders or claims on his current account.

What amount should you expect?

The amount that a bank can provide a legal entity with an overdraft depends on what type of loan is chosen in this case. Standard overdraft is provided to businesses to pay their expenses without regard to the status of their deposit.

The limit in this case is calculated as follows:

Limit = T/2

T is the standard designation for small truncated monthly credit turnover. To calculate it, a standard method is used: select in each of the 3 last months 3 maximum credits to the current account (loans are not taken into account), and then the month with the lowest turnover is taken as the countdown.

Advance overdraft - it is provided to trustworthy bank clients in order to enter into agreements with them in the future settlement and cash services.

The formula for calculating the limit in this case looks like this:

Limit = T(a) / 3

T (a) - small truncated monthly credit turnover, minus loan payments paid by the client and interest on them.

It is calculated like this:

• within 3 months, 3 maximum credits to the current account are deducted from the monthly credit turnover, excluding loans taken and receipts from accounts in other banks
• then, from these three months, choose the one where the amount was the smallest;
• From this amount, future payments on borrowings and interest on them are deducted for 2 months in advance.

An application for an overdraft is submitted by the organization and considered by the lender within 30 calendar days. Only after this the potential borrower is officially notified of the decision made.

Overdraft for collection - it is given only to those companies that fully meet all the requirements of this banking organization and more than 3/4 of their turnover on the loan of this current account is obtained from collected foreign currency earnings.

The formula for the overdraft limit for collection is calculated as follows:

Limit = I / 1.5.

I is the small monthly volume of cash of the enterprise, calculated as follows: for 3 months, 3 maximum deposits in foreign currency are subtracted from the monthly cash volume, and then the smallest month is selected and taken as the settlement month.

Technical overdraft - can be provided to an organization without taking into account its actual financial condition. In this case, the trust of the bank is gained by already registered receipts to the account, with high degree liquidity.

The formula for calculating the limit looks like this:

Limit = 0.95 x Su x K or Limit = 0.95 x S., where:

• Su is the amount in foreign currency, which the company sent for conversion into rubles in this bank;
• K is exchange rate the given currency on the date of the money transfer;
• S is the amount of guaranteed credits to a legal entity’s deposit in a given bank in the next 3 business days.

As soon as the expected receipt is actually credited, the overdraft is locked.

Interest rates

There is no single methodology for calculating interest rates for using an overdraft that is used as a basis by all credit institutions. Everyone is free, at their own discretion, to set maximum rates for using an overdraft, for violating repayment deadlines, for exceeding the limit, etc. (Clause 1 of Article 809 of the Civil Code of the Russian Federation).

In each specific case, it is taken into account financial condition the company, its reliability, whether the potential borrower provides cash and settlement services and collections at this bank. The more crystalline the credit history, the more preferential terms the future borrower can count on.

Competition is a limiting factor. Any organization has the right to change the service bank, if it is not satisfied with the proposed interest rate, contact another financial institution with more favorable conditions.

This is the main reason why the fee for using borrowed funds in most Russian banks is slightly higher than the key rate of the Central Bank during the grace period (30 days), and then rises to 20%. Interest on the loan amount is charged daily until the loan is repaid, and they can also be charged for (Clause 4 of Article 809 of the Civil Code of the Russian Federation).

Registration time

A potential borrower does not always know exactly when he may need an overdraft service. Financially stable enterprises are much more likely to issue targeted loans under certain conditions, choosing one bank or another based on their financial considerations.

But there are also those who prefer to draw up an agreement in advance. In this case, to get the maximum profitable proposition the enterprise purposefully demonstrates its financial viability for a period of 3 to 6 months. All this time, the lender evaluates the amount of income and, based on these actual data, calculates the limit on the loan using the formula.

The processing time for an application if applied in advance is 3-6 months.

Then the bank makes a decision and officially notifies the future borrower about it. But in some cases, a legal entity can receive a loan in a shorter period of time. For example, an application can be satisfied in just 3-4 business days, but finalizing the contract will still take a lot of time.

Usually with overdraft amounts up to 6 million rubles, bankers prefer not to closely study the financial indicators of a particular business, trusting money at a little more high interest rates. In special cases, the lender may go for .

Package of documents

Banks are very attentive to checking the reliability of their future borrowers.

For this reason, the package of documents required to obtain an overdraft for a legal entity consists of three large groups of papers:

1. Identification of the manager or authorized person: application in the bank form, copies of management passports with the rights to affix the first and second signatures, TIN.
2. Constituent: certificate of state registration, charter.
3. Financial: information from other organizations where the client has current accounts about the presence or absence of debts, the size of turnover, and loans.
4. Bank offers

Domestic banks are ready to lend money to businessmen in the form of an overdraft, and each offers its own conditions. From the table above it is clear that the leader of the market is Sberbank, since the commercial offers of others are forced to compete with it.

Table. Conditions for providing ruble loans to legal entities as of July 2019.

Name of the bank	Bid, %	Limit, rub.	Max. term
Sberbank	12,73%	17 000 000	12 months
Gazprombank	12%	At the discretion of the bank	14 days
VTB 24	11%	Up to 50% of the turnover on client accounts	12 months
Rosselkhozbank	*	10 000 000	12 months
FC Otkritie	*	Up to 50% of the monthly average credit turnover on a bank account	12 months
Alfa Bank	15%	Up to 10,000,000	12 months
Promsvyazbank	*	up to 50% of the average monthly turnover on the current account for the last 6 months	12 months
Raffisenbank	From 17%	For existing clients bank is up to 1.2 million rubles, and for clients who do not have a bank account, up to 900,000 rubles.	12 months

*- interest rate is determined individually.

Advantages and pitfalls of overdraft for legal entities

Among the pitfalls awaiting newcomers in the field of using overdraft for legal entities, the following can be listed:

1. Without proper experience in accumulating the necessary funds in a current account by the reporting date, you may encounter the fact that the limit will be withdrawn or significantly reduced. For this reason, it is extremely important to clearly understand how stable the real state of affairs in the company is and how financially stable the most important and largest counterparties are.
2. The bank that issued an overdraft to a legal entity may require that before the debt is repaid, all money received during this period must be credited to the client’s account, even if the receipts significantly exceed the overdraft limit. For a company, this can become a significant limiting factor that does not allow it to freely dispose of incoming money from business partners.

The unconditional advantages of an overdraft for legal entities include:

1. A simple application and registration mechanism, especially for those companies that are serviced by this bank and have already managed to fully demonstrate their financial stability.
2. The ability to quickly obtain the necessary funds for business development when cash is insufficient.
3. Acceleration of mutual settlements with counterparties when receipts from buyers and consumers of services are delayed.
4. The ability to use only part of the limit provided by the bank in order to minimize overhead costs for paying interest on borrowed funds.

The main danger facing businessmen who decide to use an overdraft is overestimating their own capabilities. Only sober calculation can help you avoid falling into a debt trap.

It is no coincidence that banks prefer to monitor for a long time (up to 6 months) how regularly and in what amounts money is received into the current account of a potential borrower. And only after careful calculations is the maximum amount that a bank with moderate risk can provide to a client for a short period of time is determined.

From a business point of view, overdraft is an index of the bank's reliability and trust in a particular client. The more clients a particular organization has, the higher its income. Opportunity to offer potential borrowers overdraft service dramatically increases loyalty to this credit organization in financial circles.

Currently, there is a downward trend in interest rates in Russian banks for using an overdraft for individuals and legal entities.

Getting approval for this service has never been easier. It is beneficial for bankers to offer an overdraft to large clients, since this automatically means opening a current account, which means that even a businessman who has not used the offered service will pay for the service.

Video: What is an overdraft limit for legal entities - 2.

The overdraft service for legal entities is actively gaining popularity among corporate clients, individual entrepreneurs, LLCs using the services of banking institutions.

It can be very useful, but you first need to evaluate all the pros and cons of such an offer, as well as evaluate the conditions offered by different banks.

How is an overdraft for legal entities written off? When money is deposited into a legal entity’s account, it is first used to pay off the debt. The interest specified in the overdraft agreement for legal entities is also taken into account.

Using the service is convenient for legal entities, since it is possible to receive funds at any time when they are needed (read more about overdraft for individual entrepreneurs, small businesses and enterprises).

Comparison with a loan and differences

An overdraft, in essence, is a loan, but it has legal entities.

These include the following:

• Overdraft is issued for a shorter period.
• With classic lending, the available amount is calculated depending on the client’s goals and solvency; with overdraft, it depends on the turnover of funds in the account.
• With an overdraft, the amount is repaid fully automatically when replenishing the personal account, while a loan involves partial repayment by depositing funds into a bank account.
• Overspending can be provided at the request of the client, and when lending this is decided individually.
• The interest rate for classic lending to legal entities is fixed and is determined at the conclusion of the agreement, but for an overdraft it depends on the terms and amount. Due to high cash flows, it may decrease.

In each individual case, the question of what is better is decided individually.

1. Unsecured. This type of lending (overdraft) for legal entities is most often issued for a period of no more than a year, without collateral.
2. Secured. Loan terms in this case may be longer - up to two years, but the conditions may differ.

   The possibility of overspending in this case is supported by a pledge in the form of property or guarantee obligations with the participation of third parties.

   How is an overdraft provided to a legal entity? Banks can take real estate, goods in circulation, securities, bank guarantees, rights to accounts receivable and so on.

Offers from banks

Many large banks offer this service for legal entities (about banks that provide this service -). Let's consider the conditions for several of these proposals:

VTB 24

Sberbank

Quite often like this credit product issued at Sberbank. It offers two programs.

The first is Express-Orvedraft, the interest on it is 15.5%, and the maximum that can be borrowed with a good history is 2.5 million rubles.

If there is no credit history, the limit is 1.25 million rubles.

Second - Business Overdraft, designed for a rate of 12.73%. The total amount can be up to 17,000,000 rubles, tranche - 30-90 days.

This program primarily assumes an excellent credit history and an active organization.

The packages are designed for up to a year, and the opening commission is 1.2% of the amount. Overdraft for legal entities in this case is provided without collateral. More information about overdraft at Sberbank -.

Promsvyazbank

The amount can reach up to 60,000,000 rubles, but it cannot be more than half of the proceeds to the current account. Interest - from 13%, term - up to five years.

Tinkoff

At Tinkoff Bank the percentage is from 24.9%, but the amount and terms are calculated individually in each specific case. You will learn about overdraft from Tinkoff Bank.

Registration procedure

To be able to use bank funds, The borrowing company must meet a number of requirements:

The client submits the main set of documents when opening a current account. Most often, the service agreement already includes the ability to activate a limit.

After 2-6 months, the bank will offer to do this, or you can submit an application yourself.

In the first case, you can simply refuse to overspend if there is no need for it. In the second, the bank will analyze the financial position of the company, calculate the appropriate limit for a legal entity and the percentage when individually determining the overdraft rate.

Directly when connecting to the service, the following documents may be required:

• Application and questionnaire;
• Constituent documentation with stamps government agencies registration;
• A copy of the license to conduct a certain type of activity, certified by a notary.
• Financial statements marked by tax authorities.
• Audit reporting data.
• Information about the balance of finances, absence or presence of debts.

What do you need to quickly take out an overdraft for legal entities?

Among the numerous types of financing, overdraft lending services for legal entities stand out. Banks are willing to set limits for clients with an impeccable credit history, especially if most of the income goes through current accounts opened in any regional division. An overdraft loan for legal entities, what it is, we will consider in this article.

Definition and features of loans in the form of overdrafts

Overdraft for a legal entity- This borrowed funds, which are provided by the bank to cover the current expenses of the enterprise in excess of the balance of funds existing on current accounts. If the client has a time gap between the need to pay his obligations to counterparties and expected receipts, he can count on a loan established on the current account.

Lending under the overdraft program is carried out exclusively on the basis of a formalized credit or loan agreement signed by two parties: a legal entity and a bank.

Types of overdrafts

Given the competitive environment in the banking sector, overdrafts for legal entities may vary. Based on the information used to determine the amount:

• standard. Allocated to existing clients with a good credit history, provided there is no debt to budgetary or other official funds. The loan amount is determined by the average monthly receipts to bank accounts;
• advance. Provided to potential clients as part of their recruitment for services. To calculate the limit, information on receipts to accounts from other financial institutions is used.

By provision:

• blank. The guarantee of fulfillment of obligations is the transfer of turnover or collection to bank accounts in the amount of about 70% of the gross values. In fact, the loan agreement is concluded without collateral. In practice, a guarantee from officials or co-owners of the enterprise is often required;
• with security. The same instruments as in conventional lending can act as collateral: movable and real estate. If obligations are secured by cash deposit accounts, overdraft is called technical.

According to repayment terms:

• trench Fixed terms are established for the repayment of each specific case of using funds in excess of the balance. Within 30–90 days;
• urgent. The agreement specifies the terms for repaying the debt. On average, debt “clearing” should occur once every 30–90 days.

Depending on the bank's credit and marketing policies, there are other types of overdrafts. For example, Sberbank offers individual, express and with a general limit.

For legal entities, the choice of product is directly related to its cost. Risky, unsecured loans are provided at higher interest rates compared to secured ones.

"Sberbank of Russia" - Business overdraft loan: conditions

Conditions for receiving

To know how to obtain an overdraft for a legal entity, you need to familiarize yourself with the general criteria that banks apply when assessing the possibility of lending:

1. An impeccable story. Availability outstanding loans serves as an obstacle to initiating the review procedure.
2. No debt, especially overdue, to budget and social funds.
3. Profitable activities and availability of income to current accounts. Retrospective is established by each bank independently, depending on the accepted credit policy. On average, 3-6 months of net turnover and at least one annual balance sheet are considered. For technical overdrafts this requirement is removed. For other types of lending, the financial condition of a legal entity is studied more closely.

Banks have an individual approach to lending to legal entities. Therefore, reviewing your overdraft limit can take anywhere from a few days to a few weeks.

Overdraft calculation

Each bank applies its own coefficients and formulas to link the credit limit to clients' current accounts. For example, Sberbank sets an overdraft for legal entities based on an analysis of the turnover of funds over the last 3 months. In others, calculations may take from 2 to 6 months.

In this case, the limit is usually equal to the average value for the entire calculation period, adjusted to the coefficient used by the bank. Depending on the type of overdraft, as well as the financial condition of the legal entity, it may be set from 10 to 75% net average monthly receipts.

How does overdraft work for legal entities?

Most often, the contract is concluded for no more than 1 year. During the validity period, the overdraft is recalculated on a monthly basis. If revenues fall, the amount is reduced. If they grow, the limit for a legal entity is revised upward. Each change in the terms of the loan is accompanied by the signing of additional agreements to the main loan agreement.

Receipt procedure credit funds lightened to a minimum. To do this, a payment order from the client’s account with no balance is sufficient. Payment is made via overdraft. That is, in excess of the remainder. The purpose of the loan is current activity. It is not permitted to pay for fixed assets or make investments with funds.

Repayment occurs automatically when the next receipt from any counterparty is credited. In this case, interest is charged for the actual time of using the overdraft.

Benefits and inevitable costs

Opening a limit will require the provision of financial and legal documents to the bank. Therefore, the question arises of the justification of obtaining such a loan. Considering that overdrafts are offered directly by financial institutions, many heads of legal entities refuse, because the labor costs and subsequent loan servicing are not worth the time spent: the amounts are not critical, and there are many pitfalls. At the same time, there are many advantages:

• simplified receipt procedure;
• a constant margin of safety to cover cash gaps;
• the presence of an airbag in case of unforeseen costs and force majeure circumstances;
• acceleration of financial and trade turnover.

Credit overdraft for legal entities, what it is and how it works, we have already discussed. But we can’t help but touch on an important component of any financial instrument – expenses. In addition to the interest rate, which is charged for each actual day of use of credit funds in addition to the balance on the current account, there are commissions:

• for reviewing and analyzing documents;
• for setting a limit;
• for early repayment;
• for the unused limit.

The longer the cooperation with the bank and the more stable the financial condition, the more preferences a legal entity may require when servicing. Overdraft often acts as a tool to demonstrate the loyalty of a financial institution to its clients, therefore, during preliminary negotiations, the possibility of canceling additional commissions can be separately discussed.

And pay special attention to the size of penalties for failure to meet repayment deadlines or designated purposes: they can be 2-3 times higher than the established interest rate.

Cooperation between legal entities and banks should lie exclusively within the legal framework. If during negotiations you are promised one thing, but the information in the contract is completely different, you should not rely on verbal assurances from officials at the bank. All overdraft conditions must be recorded on paper.

Every citizen knows what lending is and what benefits it provides for regular users of the programs. But few people are interested in an alternative solution, namely the overdraft service.

In some cases, this can be a worthy replacement for conventional consumer loans and will allow you to get more benefits. Let's talk about arranging an overdraft for a legal entity.

Overdraft concept

The Bank offers the use of this service to individuals and legal entities who have an open salary card. It is slightly different from conventional lending and, if all conditions are properly met, you can get benefits.

What is an overdraft service? Thanks to it, the client has the opportunity to make a purchase if there is not enough money on the plastic card.

For example, if a client has collected goods worth 1,000 rubles in a store, but only has 500 in his account, then the bank will allow him to “go into the minus” a little and the remaining 500 rubles will be provided on credit terms.

The term “overdraft” itself is translated as overspending of funds. You can connect services only by signing an agreement with the bank and submitting an application in advance. It differs from conventional lending in that “credit” funds have a short issuance period and the debt must also be repaid quickly.

In most banks, the conditions for providing an overdraft include a grace period of 30 days, during which no interest rate is charged. Interest is charged as for normal short term loan. Bank employees approach the issue individually and assign a different limit for each client.

An overdraft for legal entities may depend on income, its stability, the presence of expensive property, and other things.

For entrepreneurs, this cooperation can help establish a business. After all, there are situations when there is not enough money in the current account to purchase a new product or supply equipment, but you need to make a payment urgently.

In this case, the bank will issue the missing amount and then write off the debt along with interest on the loan. This service can only be obtained if you submit an application to the bank in advance and sign an agreement.

Thus, an overdraft helps businesses maintain cash flow and pay bills on time. There are 3 types of overdraft available for legal entities:

1. on standard conditions;
2. advance. This option available only to verified and reliable clients;
3. for collection. Provided in cases of collected revenue of at least 75%.

What are the benefits of an overdraft for legal entities?

The algorithm for obtaining an overdraft for a legal entity is simple. For each case, a cash limit is calculated.

Thanks to this short-term lending The borrower has the opportunity not to wait until the goods or services pay off, but to make payments to suppliers and employees on time.

For enterprises, the costs will be minimal, because the loan amounts are small and are constantly repaid from the proceeds to the current account by the end banking day. Thus, using an overdraft helps to avoid unpleasant situations and production delays.

How to get a?

The legal entity has available credit limit, which he can use if necessary. To do this, you will not need to prepare documents for obtaining a loan and additionally burden your accounting department.

To sign an agreement, you will need to collect a package of several documents once and submit it to the bank. This will save working time and reduce the burden for financiers and accounting employees of the enterprise.

First of all, you will need to prepare:

• accounting reports about the activities of the enterprise;
• fill out the borrower form and submit an application on behalf of the company;
• reports on cash turnover;
• documents that will show the status of accounts payable and receivable.

The bank has the right to request from company representatives any other information that can confirm solvency.

He also needs guarantees that the company will not go bankrupt in the near future and may be asked to provide production and sales statistics or other similar documents. If the type of activity of the company requires a license, the bank may ask to provide copies of current licenses.

Limits for each client are calculated separately, because this can be influenced by many factors, ranging from income to financial forecasts for the growth of the company’s income.

For example, several well-known banks can offer the following limits for legal entities:

1. Alfa-Bank can sign an agreement if all conditions are met and will issue a limit ranging from 750 thousand to 6 million rubles. Legal clients, which are on cash service– from 500 thousand to 10 million rubles;
2. UralSib issues a card with an overdraft of up to 500 thousand rubles;
3. Mezhtrustbank calculates limits for each client separately;
4. Absolut Bank allows its clients to use an overdraft of up to 750 thousand rubles.

Such banks give overdrafts to legal entities quite willingly, especially if the clients’ solvency is high.

Bank conditions for overdraft lending

There is huge competition between banks, each of them is trying to create the most profitable tariff package.

For example, at Absolut Bank the limits are high, so all documents will also have to be accompanied by a certificate from the employer. Usually the presence of a source stable income and registration in the region of issue plastic card required.

Depending on the client’s financial situation, the interest rate can be charged in the range from 18% to 30% per annum for using an overdraft.

You will also need to enter minimum payment in the amount of 10% of the principal amount of the debt monthly. Usually, issuing a card is free, but you will have to pay about 48 thousand rubles a year for maintenance.

More about the loan

• Duration up to 5 years;
• Loan up to 1,000,000 rubles;
• Interest rate from 11.99%.

Credit from Tinkoff Bank

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• According to the passport, without certificates;
• Loan up to 15,000,000 rubles;
• Interest rate from 9.99%.

Credit from Eastern Bank

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More about the loan

• Duration up to 20 years;
• Loan up to 15,000,000 rubles;
• Interest rate from 12%.

Loan from Raiffeisenbank

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More about the loan

• Duration up to 10 years;
• Loan up to 15,000,000 rubles;
• Interest rate from 13%.

Loan from UBRD Bank

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More about the loan

• The solution is instant;
• Loan up to 200,000 rubles only with a passport;
• Interest rate from 11%.

Loan from Home Credit Bank.

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More about the loan

• Duration up to 4 years;
• Loan up to 850,000 rubles;
• Interest rate from 11.9%.

Loan from Sovcombank.