Corporate Overdraft Facility

The Corporate Overdraft Facility is a credit solution designed to provide cash flow relief and emergency funding for corporate customers . The facility is intended for working capital needs and the purchase of stock . It can also be used to finance administration and operational expenses, helping businesses bridge cash flow gaps during periods when incoming revenues do not align with outgoing payments .

The facility amount is determined based on two factors : Up to 60% of business turnover – Your approved limit is tied to your company's revenue performance Up to 80% of acceptable collateral value – The limit is also based on the value of the security you provide. This dual calculation method ensures that your borrowing capacity reflects both your business activity levels and the collateral you can offer.

The interest rate is calculated as the Base Rate plus a Risk-Based margin . The specific margin is determined based on your corporate entity's risk profile as assessed by the Bank. For current Base Rate information, customers are advised to contact NBS Bank directly or visit any NBS Bank Service Centre. The facility term is subject to renewal every 12 months . This annual review allows the Bank to reassess your facility based on your current financial position and business performance.

The Corporate Overdraft Facility includes a valuable feature for corporate customers: additional temporary facilities of up to 10% of the existing limit are permissible . This means if your business faces an unexpected need for extra funds beyond your approved limit, you may be able to access a temporary increase without going through a full new application process. This flexibility is particularly useful for seasonal businesses or those handling large, unexpected orders

To qualify for the Corporate Overdraft Facility, your corporate entity must meet several requirements. Your company must have maintained an active NBS Bank account for at least six months. You must provide marketable collateral to secure the facility. Required documentation includes your Memorandum of Association or Articles of Association, a Board Resolution to borrow from the Bank, cash flow projections, a business plan and company profile, and an insurance policy covering the full value of the collateral with the Bank's financial interest duly noted. Additionally, you must submit audited financial statements and management accounts to provide a complete picture of your company's financial health.

The Corporate Overdraft Facility offers several key benefits for corporate customers. It provides the ability to bridge cash flow gaps by covering temporary shortfalls between expenses and incoming revenues. The facility can be used to finance administration and operation expenses such as payroll, utilities, and supplies, as well as working capital needs including inventory purchases. Unlike a term loan where you receive a lump sum and repay in installments, an overdraft facility gives you ongoing access to funds up to your approved limit. You only pay interest on the amount you actually use, making it a cost-effective solution for managing fluctuating cash flow needs.