With an Overdraft Facility, you will be able to leverage on your funds on a pay per use basis.
Most banks offer overdraft services and protection, and the process is considerably easy.
Saves you from not having enough money during emergencies or other unforeseen circumstances.
Whenever you don't see a need for the facility anymore, you can close it even during the duration of your loan payments.
A business overdraft lets your company spend beyond the balance in its current account, up to an agreed limit, and pay interest only on the amount you actually use. Unlike a term loan that arrives as a lump sum and is repaid on a fixed schedule, an overdraft sits quietly attached to your account and is there when you need it — ideal for the small, unpredictable gaps that come with running a business rather than a single large, planned expense.
Overdrafts come in two forms. A secured overdraft is backed by collateral — property, a fixed deposit or another asset — which usually earns a higher limit and a lower rate because the bank's risk is lower. An unsecured overdraft requires no collateral, so it is quicker and less encumbering to set up, but typically comes with a smaller limit and a higher rate. Which is right depends on how large a buffer you need and whether you have an asset you are comfortable pledging.
The appeal of an overdraft is that an unused facility costs little or nothing beyond any annual or facility fee. Interest is charged only on what you draw, usually calculated daily on the outstanding balance, so a buffer you rarely dip into is cheap to keep around. That makes it well suited to covering timing mismatches — a supplier payment that lands a few days before a customer pays you — rather than long-term borrowing, where the running interest on a persistently drawn balance can become expensive.
Overdrafts are usually repayable on demand, meaning the bank can review or withdraw the limit, so they are best treated as a short-term buffer rather than permanent funding. It is worth comparing the facility fee, the interest rate on drawn amounts, and how the limit is reviewed over time. Directors are typically asked to provide a personal guarantee even on an unsecured facility.
Fundwise helps you weigh an overdraft against other short-term options and compare what different banks will offer on limit, rate and fees, so the safety net actually fits how your cash flow behaves. Ask us about your options.
Guiding you at every step — and back again for your next financing need. It's an ongoing cycle, not a one-off transaction.
An overdraft facility lets your business withdraw more than the balance in its account, up to an approved limit, and you pay interest only on the amount you actually use. It is a flexible buffer for short-term cash-flow gaps rather than a lump-sum loan. Fundwise helps you compare facilities; we are not the lender.
A secured overdraft requires you to pledge an asset such as property or a deposit as collateral, which usually means a higher limit and lower rate. An unsecured overdraft needs no collateral but typically carries a higher rate and a smaller limit. We help you weigh which fits your situation.
Interest is usually charged only on the drawn amount, calculated daily on the outstanding balance, so an unused facility costs little or nothing beyond any annual fee. Exact rates and fees vary by bank and your credit profile.
Banks generally require a Singapore-registered business with an operating track record and directors or guarantors who meet their credit criteria; a personal guarantee is common. Requirements differ by bank, and we match you to those you qualify for.
No. Fundwise is an independent loan advisory and brokerage, not a bank or licensed financial institution, and does not provide facilities itself. We connect you with the banks that do.
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