OVERDRAFT (OD)
Flexible Business Liquidity Within an Approved Facility
Explore eligible overdraft arrangements for short-term business liquidity and operating requirements through suitable banks and financing institutions.
- Facility: Overdraft
- Purpose: Business Liquidity
- Security: As Applicable to the Facility
- Limit: Subject to Lender Assessment
Overview
Liquidity for Eligible Business Requirements
Capital Yono assists eligible businesses in exploring Overdraft facilities that permit utilisation within a bank-approved limit. Eligibility and structure may depend on the applicant’s business profile, account conduct, cash flows, available assets, collateral, deposits or other institution-accepted security, depending on the selected product.
Uses & Structure
- Short-term operating cash-flow requirements.
- Eligible business payment and liquidity needs.
- Cash-flow support within the lender-approved terms.
Overdraft eligibility, margin, security and renewal vary by lender and product. A secured OD is not automatically a collateral-free facility.
Preliminary Screening
Financing institutions may assess the applicant’s constitution, business vintage, turnover, banking conduct, existing liabilities, repayment history and proposed security or deposit arrangement where applicable.
Documents to Keep Ready
- KYC and business constitution; bank statements; financial statements and GST/ITR as applicable; existing debt details; purpose of facility; proposed asset, deposit or security information where relevant.
FAQs
Is an Overdraft the same as Cash Credit?
Both may provide revolving liquidity, but the approved basis, drawing conditions and security may differ. The lender determines which facility suits the business.
Can the overdraft be backed by property or another eligible asset?
Applicable secured overdraft products may be evaluated against lender-accepted security and valuation requirements.
Is the overdraft limit available without any appraisal?
No. The limit and conditions depend on the financing institution’s assessment and documentation.
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Explore an Overdraft Facility for Your Business
Tell us your liquidity requirement and the available financial information to begin a preliminary assessment.
Funding is subject to eligibility, appraisal, due diligence, approval and final terms from the relevant funding provider.