Overdraft
An overdraft offers finance for seasonal production inputs and day-to-day expenses. It
differs from a loan as it is repayable on demand. Your overdraft facility is linked to your
farm's transactional account and reviewed annually. Debit balances are normally
repaid after the harvesting season.
It provides you with working capital for day-to-day expenses and for the purchase of
production inputs. It operates as a fluctuating overdraft facility that is perfect for
farmers or farming businesses operating as sole proprietors, partnerships, close
corporations, companies, trusts or co-operatives.
Benefits
- You can access working capital for day-to-day expenses and to purchase items necessary for production.
- Overdrafts are normally repayable on demand and reviewed annually.
- The interest rate on your account can be linked to the prime lending rate.
- Debit balances are usually repaid after the harvesting season.
