Today’s guide will briefly discuss the Absa business overdraft in South Africa.
An Absa business overdraft facility with your cheque account could be the answer for all your cash problems as it allows you to overdraw your cheque account up to an approved limit.
An overdraft gives you access to additional cash to cover any unplanned business expenses that may arise.
We will show you the requirements to apply for this loan.
What Are The Requirements
Below are the requirements for Absa business overdraft:
- You have to be 18 years or older and with a valid SA ID
- Regular minimum monthly income of R2000
- A cheque account into which your monthly income is paid
- Provide your attest payslips or three months bank statements
- You must provide proof of address not older than three months
These are the requirements to apply for business overdraft in South Africa.
Absa Business Overdraft
The minimum security required for this loan is the personal suretyship of the principal.
This credit facility is a revolving facility and is reviewed every year.
It is granted for a fixed period, and you must repay the total amount outstanding at the end of the fixed period.
The interest rate charged on your loan is negotiable.
The interest is calculated and payable on the daily balance meaning that you are charged on the facility you only used.
These are the features of the Business overdraft in South Africa.
Now that you know the features, we will show you the loan benefits to South African business owners.
Benefits Of Absa Business Overdraft In South Africa
It is easy to track and manage your transactions since the facility is linked to your cheque account.
This loan helps you maintain a good credit history by avoiding debit reversals due to insufficient funds.
The facility also ensures timely payments are made, and you are advised to avoid late payments as they attract penalties.
You only pay interest for the credit you have used.
You can get a credit protection plan to protect your business in the event of death, disability, terminal illness, or loss of income.
These are the benefits of the Absa business overdraft in South Africa.