While crowdfunding, factoring and leasing regularly make waves and reach the corporate finance market with new opportunities, what is the most important financing instrument for many entrepreneurs is increasingly forgotten: the overdraft facility. Of course, this does not mean that other financing options are unimportant – on the contrary: A balanced financing mix is only advisable for companies of all sizes, but the current account credit should not be forgotten.
What is a current account credit?
A credit agreement enables a company to overdraw its account at any time up to a previously agreed amount. In return, the company pays interest to the bank on the excess amount. The current account credit is ideal for overcoming short-term liquidity bottlenecks or managing unexpected costs. Here we have summarized more information about the overdraft facility for you.
Companies accept high interest rates
Although the overdraft facility is part of the standard repertoire of every successful company financing, many entrepreneurs are not aware that they are paying significantly too high interest rates on the loan – some even accept it. A current survey by the Central Hard Goods Trade Association comes to the conclusion that companies usually pay interest on the current account from less than 7% pa to 12% pa. This fluctuation can also be explained by the different loan volumes and the widely differing credit ratings of the companies, but the cause of the problem is deeper.
Bank-independent advice as the key to independence
Many companies accept worse conditions at the house bank because they value the advisory work of the customer advisors in addition to the capital, because small and medium-sized companies in particular often rely on external expertise when it comes to financial planning – but this can also be organized independently of the banks.
Free advice and top loan conditions
If you want to avoid being too dependent on your bank, consult various partners. Financing.com GmbH has created a tailor-made offer for this, which offers you maximum convenience: We advise you free of charge on all financing questions and provide you with a financing mix at very good conditions. How exactly does it work?
More capital at more favorable conditions in 3 steps
- We negotiate for you with banks and financing partners
- We compare the offers of numerous partners
- You will receive a tailor-made offer
Particularly attractive: it will only be concluded if you are satisfied with the offer. All of our advice and quotations for you are free of charge – so you can only win.
New liquidity through monthly cost savings
Thanks to the improved conditions, you have a high monthly cost saving. An improved current account credit interest rate alone will relieve your accounts in the short and long term. For example, you can invest the newly gained liquidity in the growth of your company.
Better conditions and independence through a diversified financing portfolio
The overdraft facility is an essential means of financing for companies and accompanies them for a lifetime. It is all the most important that current account and interest rates serve the good of the company and do no harm. A diversified financing portfolio is also essential for a good basis for negotiations with banks and other financing partners – this includes both different financing models and different financing partners.