Credit line, overdraft or factoring.

Tell about 3 types of lending that may be suitable for doing business

Overdraft

This service allows you to connect constant access to credit resources to the current account. With an insufficient amount of own funds, bank money can always be applied. A kind of airbag for which you need to make an appropriate fee in the form of interest.

Mechanism of functioning

For example, an organization needs raw materials and materials that require payment in

The company has

Each credit and financial organization has its own overdraft conditions. As a rule, the limit of such a service is

Credit line

This is a credit program that can be divided into several stages. How often you will use them, depends on your current needs. The banking company issues them immediately upon request.

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The mechanism of operation of the non-renewable line.

The company decides to expand its production volumes and purchase new modern equipment to increase efficiency and production. The banking institution establishes the permissible amount of the loan in the amount of 2 million rubles. Money issued is available companies at any time that can be used by tranches.

Percentages are accrued specifically with the amount taken. As soon as the amount of borrowed funds reaches

How the renewable line acts

The company took 2 million rubles of loans from which 1 million rubles took advantage. After a while, the company reaches a tranche. As a result, 2 million rubles are again available for use.

Factoring

The main principle is compensation