How do I apply for business overdraft?
First, you should determine the amount of overdraft you need. Understand why you need the overdraft and how it will benefit your business.
Research various banks and financial institutions that offer business overdraft facilities. Compare their terms, interest rates, and fees.
Prepare the necessary documents, like financial statements (balance sheet, income statement, cash flow statement), business plan and projections, bank statements, personal and business credit reports, proof of business registration and licenses.
Visit the bank’s website or a local branch to fill out an application form. Submit the required documents along with the application. Some banks may offer online application options.
Once your application is approved, the bank will set up the overdraft facility on your business account. You can now use the overdraft as needed, up to the agreed limit.
Business loan calculations for 3 years (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 500,000 | 6.50% | 50,104 |
| 500,000 | 15.50% | 119,479 |
| 500,000 | 25.50% | 196,563 |
| 1,000,000 | 7.00% | 107,917 |
| 1,000,000 | 16.00% | 246,667 |
| 1,000,000 | 26.00% | 400,833 |
| 2,500,000 | 7.50% | 289,063 |
| 2,500,000 | 16.50% | 635,938 |
| 2,500,000 | 26.50% | 1,021,354 |
| 5,000,000 | 8.00% | 616,667 |
| 5,000,000 | 17.00% | 1,310,417 |
| 5,000,000 | 27.00% | 2,081,250 |
You can also see the similar FAQ about Canadian banks:
Details of companies offering the financial services:
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
TD Bank
Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto
Contact center: 866-222-3456
Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp
Swift code: TDOMCATTTOR
Stock code: TD
BSB: 004