Overdraft

17.07.2013 06:50

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Overdraft

1) Financial arrangement whereby bank allows client to draw money which he does not have in his account (ie overdraw) to meet immediate needs on the expectation that funds will be forthcoming.

Basically a short-term facility (for which security is needed) and not to be used for purchases of capital assets. Normally with a specified limit/ceiling and reviewable periodically.

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.176 (288 p.)


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