Business Overdrafts
Overdrafts are excellent as a short-term finance option. They are easily arranged, flexible, and there is not usually a charge if you wish to repay the overdraft early. On the downside, overdrafts are often abused leaving the borrower open to hefty fees if the overdraft limit is exceeded. Another negative is that overdrafts can be taken away just as easily as they are given if they are abused regularly. Overdrafts should also not be used as a long term finance option; unsecured loans are much less expensive in the long term.