Overfraft Limit(OD Limit)
Welcome to Fayda Finserv, where we're dedicated to fueling your business's financial growth and success. We're excited to introduce you to Overdraft Limits (OD Limits) – a dynamic financial tool designed to provide your business with a safety net and empower you to navigate cash flow fluctuations with confidence.
What is an Overdraft Limit (OD Limit)?
An Overdraft Limit, often referred to as an OD Limit, is a financial arrangement that offers your business the flexibility to withdraw more funds from your business account than the available balance. It acts as a buffer, allowing you to bridge short-term cash flow gaps and meet immediate financial obligations, even when your account balance is insufficient.
Key Features and Benefits of OD Limits:
1) Financial Safety Net: OD Limits provide your business with a safety net to manage unexpected expenses, avoid payment defaults, and navigate seasonal fluctuations.
2) Flexible Repayment: As your cash flow improves, you can repay the overdraft amount without rigid repayment schedules, giving you the flexibility to adapt to changing financial circumstances.
3) Immediate Access to Funds: OD Limits ensure quick and easy access to funds whenever you need them, eliminating the need for time-consuming loan applications.
4) Interest on Utilized Amount: You're charged interest only on the overdrawn amount and for the period it's utilized, making it a cost-effective solution for short-term financing needs.
5) No Fixed EMI Obligations: Unlike traditional loans, OD Limits do not require fixed Equated Monthly Installments (EMIs), allowing you to manage repayments based on your convenience.
6) Business Continuity: Maintain your business's operations, honor financial commitments, and take advantage of growth opportunities, even during cash flow challenges.