A business overdraft is a flexible cash flow facility in the form of a credit line, allowing unlimited withdrawals and repayments. Businesses can use the funds as needed and repay at their convenience without penalties. Interest is charged only on the daily outstanding balance, not on the full overdraft limit.

Uses of a Business Overdraft
A business overdraft is commonly used for:
Managing working capital
Purchasing inventory
Funding business development
Covering business expansion expenses