An Overdraft is a flexible form of borrowing that allows businesses to withdraw funds from their Current Account up to a pre-approved limit. Interest is only charged on the amount overdrawn for the period of borrowing, making it a cost-effective way to manage short-term cash flow. Customers can also deposit funds into the account to reduce the outstanding balance or withdraw more as needed providing further flexibility. Interest is calculated daily on the fluctuating balance and typically charged at the end of the month.