Natwest has become the first major bank in the UK to offer small business customers an overdraft facility which is not repayable on demand at the bank’s whim. This will effectively give SME’s greater control over their finances and enable them to plan more thoroughly.
Under the current system overdrafts are repayable on demand, leaving small business subject to uncertainty over the structure of repayments. The new system, called the Committed Overdraft will provide “small businesses with clear, up-front commitments, dispensing with current uncertainty and ensuring that having a three, six or twelve month overdraft from Natwest means just that.” Said Gordon Pell Natwest’s Chief Executive for retail banking.
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