Overdraft
A credit facility allowing an account balance to fall below zero up to an agreed or authorised limit.
Related terms
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Business overdraft
A bank facility allowing a business account to go below zero up to an agreed limit, normally repayable on demand or under the facility terms.
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Credit facility
An agreed source of borrowing that can be drawn subject to set limits and conditions, such as an overdraft or revolving loan.
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Credit limit
The maximum amount a lender agrees a borrower may owe under a credit facility at a particular time.
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