A business account in the negative? At some banks it is possible to be overdrawn on your business account. With an overdraft you can, as it were, borrow money from a bank for a short period. Because no agreements have been made about repayment or the date on which you are in the negative, a high interest rate applies when you are in the negative.
Do you expect to be in the negative for a longer period or for a large amount? Then consider taking out a business loan with your bank. With a business credit you borrow a certain amount from the bank with payment terms and interest rates that have been agreed Prior to. Because clear agreements have been made and signed, you usually pay a lower interest rate with business credit.
Note that most banks have a limit for overdrafts. Most banks allow you to be down as low as $ 1,000 or $ 2,000. In addition, the maximum repayment term is on average 30 days to 3 months.
Interest percentages are overdrawn business account
ARM: not possible to be in the red
Triangle: red not possible
PIG BANK: you cannot be in the red
Bunq: it is not possible to be in the red
Space bank: not possible to be in the red
The above debit interest rates were compounded on November 21, 2018. The current debit interest rate may deviate from the above percentages. Therefore, always check the interest rate on the bank's website before closing the business account.
Never be in the red again?
Perfect has a handy solution, so that you will never again be in the red on your business account, if you still have enough money in your private account or savings account. You can have Perfect automatically transfer money from your private account to the business account (or vice versa) if you are about to end up in the red. Will an amount be deducted that will reduce your $ 500? Then Perfect automatically transfers $ 500 from your private to business account so that you never end up in the red and therefore never have to pay interest.
In addition to being in the red on your business account, you can also have a negative balance on your business credit card. Curious which business bank accounts also offer business credit cards? Compare all bills here.
Can I open a business bank account if I have a BKR registration?
Is a business account mandatory?
Why is a business account more expensive than a private account?
How long does a business account request take?
Is my money safe in a business bank account?