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Because of the changing character of the facility, it is just provided with a flexible rate of interest.

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10y ago

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Does My Business Commercial Overdraft Possess A Variable or Fixed Rate?

Because of the changing character of the facility, it is just provided with a flexible rate of interest.


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These two terms are different.For a bank overdraft, you should have an account with the bank and it is a limit on borrowing on a bank current account. With an overdraft the amount of borrowing may vary on a daily basis.A bank loan is a fixed amount for a fixed term with regular fixed repayments. The interest on a loan tends to be lower than an overdraft.


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