Overdraft for your business - Line of credit for companies

Overdraft, working capital credit or line of credit — popular names have many names. Overdraft is ideal when your company is dealing with fluctuating cash flows.

With all the VAT, employer charges, and other taxes that companies pay to the state, it can sometimes be difficult to plan finances.

An overdraft (also known as a credit line, revolving credit, or working capital credit) is a credit that allows the company to borrow money up to a limit (ceiling) at any time. Normally, the company pays a limit fee of 0.25%-2.00% plus interest on the part of the credit used. The interest rate for an overdraft varies widely from bank to bank and depends on the company's creditworthiness.

An overdraft gives the company the opportunity to draw up the funds necessary to achieve short-term goals.

When should you use a check credit?

If your company has natural fluctuations in activities, for example due to seasonality or large projects that arrive irregularly, you may need to borrow money temporarily to meet the company's short-term needs. A common way to compensate for these fluctuations is to apply for a so-called overdraft or working capital loan.

An overdraft is an agreement with a financial institution that sets a maximum limit (loan ceiling), where the borrower has the option to use nothing, all or part of the limit. The company can withdraw money (as much or as little as desired) from the overdraft as needed, as long as it does not exceed the maximum limit in the agreement.

Overdraft is similar to a credit card: you use it when you need it. The term originally comes from the time when people issued handwritten checks. You repay the loan when it suits the company, and you can borrow or use more of the credit if there is room for the limit.

Overdraft for startup companies and startups

Getting a line of credit from the bank as a starting company can be difficult. It's often easier to apply for a business loan online and then increase your credit as you grow.

How do you use a check credit?

Many companies use overdraft loans to increase their working capital. By using this type of loan, you bridge the gap between the company's short-term liabilities and incoming cash flow.

The overdraft is primarily intended to help the company stabilize its cash flow, and not as long-term financing. An overdraft is usually used for short-term working capital needs, such as covering salaries with new staff, purchasing inventory before the Christmas season, or obtaining additional capital to fulfill a large order or to absorb seasonal cash flow variations.

Check credit for small businesses

Is a check credit a good loan form for my company?

Ideally, of course, you have savings on hand for emergencies, but an overdraft is a good alternative. Overdraft loans are designed to help meet a company's short-term needs, such as purchasing goods or additional inventory or covering operating costs. The right use of overdraft can help your business thrive and grow.

One advantage of an overdraft over a traditional loan is that you normally only pay for the part of the credit you actually use, although many lenders also charge monthly or limit fees in addition to interest.

How can my company get a check credit?

It can be difficult to get an overdraft from the bank. If you have a starting business or have been in arrears, you can apply for a regular business loan without requiring collateral. Make sure you are not tied to a loan and that you can repay the credit early without having to pay for the entire term.

Many companies are considering modern online lenders, such as Qeld, that provide business loans quickly and without hassle to small and start-up companies and companies without perfect credit.

While banks can be reluctant to provide business loans to companies with a lower credit rating, Qeld allows you to apply for a business loan quickly and easily through an automated process — allowing you to get a loan faster. Of course, there are also other lenders, but we at Qeld often offer better terms that suit your situation.

Check credit in English

Check credit, credit line, line of credit

About Qelds Business Loans

Our loans have a fixed monthly amount. This means that we have no interest, start-up costs or other hidden costs. What you see is what you get. In addition, you only pay for the period that you use the loan. So if you pay back the full amount after 3 months, you only have to pay 3 monthly costs and not the remaining monthly costs. Learn more about who founded Qeld and who works here on the “About Qeld” page.

Is it easy for my customers to submit a request to you?

The short answer is — YES! We don't ask for more information from you than we really need. So you can do what you do best — run your business.

The request only takes a few minutes, you will be contacted within 1 hour and the money will be paid out within 24 hours. Fast, safe and easy!

Check Credit Questions and Answers

What is the maximum check credit limit at Qeld?

The maximum credit limit with Qeld or similar financial institutions is often based on an assessment of the company's financial health and creditworthiness. This limit is determined individually for each company after a thorough analysis of the financial situation and needs. Since Qeld does not specify an exact maximum limit in the text provided, it is likely that they offer tailored credit limits based on each company's unique situation.

How are the interest and costs for a check credit determined at Qeld?

The interest rate and costs for an overdraft are usually determined by a combination of factors such as the company's credit risks, the current market situation and the total amount of credit. This can be done, for example, via our Qeld Score.

Can a company with late payments qualify for a check credit with Qeld?

For companies with late payments, Qeld, like many other modern lenders, can offer flexible solutions that take into account the company's current financial situation and future potential, instead of focusing solely on historical data. This means that companies with late payments can also qualify for an overdraft, provided they can demonstrate a stable income and a convincing business plan.

What are the specific requirements for repaying used credit at Qeld?

Regarding repayment requirements for used credit, companies that use check credits usually have the flexibility to repay the used credit according to their cash flow and financial capacity. Qeld mentions that customers only pay for the time they use the loan, which suggests they have flexible repayment terms. Without specific details in the text, it is reasonable to assume that the reimbursement plan can be customized to meet the company's needs.

How does early repayment of the check credit affect the cost of the loan?

Early repayment of a loan with Qeld is often advantageous, as the company only has to pay monthly fees for the time the loan is used. This means that if a loan is repaid earlier than planned, the company can save money by avoiding further monthly fees. The text does not provide information about any early repayment costs, but highlights that companies can benefit from repaying the loan early. However, it is always wise to check the specific terms and conditions for early repayment directly with the lender.