Glossary
Overdraft
An overdraft is when the bank lets you take out more than your balance, so you owe it the difference plus interest.
What it means for a shop owner
It is a short fix for a cash gap, not permanent funding. Its rate is usually higher than a loan. Watch your balance daily so you do not stay in it for weeks.
A worked example
Your balance is 500 and you take out 800. You are now overdrawn by 300 and pay interest until you cover it.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes