Manage your business cash flow with an FNB Business Overdraft this festive season

As we come to the close of 2023, most business owners in Eswatini are preparing for the end of year rush which does not only boost sales, but also influences a hike in expenses and uncertainties. Whether your business needs to stock up on inventory to meet a rise in demand, pay salaries and bonuses, or deal with unexpected emergencies, the need for extra cash to keep your business running smoothly is likely to arise during the festive.

The FNB Business Overdraft is a convenient way of ensuring that you have that extra cash to dip into to help you tackle unforeseen expenses. This is a short term loan facility that is linked to your FNB Business Account and provides you with access to additional funds when you need them the most. You can use the overdraft to make payments even when there is no cash available in your account, thus avoiding penalty fees and additional charges.

FNB’s Executive Head of Credit, Thandeka Dlamini, stated that the Business Overdraft is being promoted by the Bank as part of its comprehensive lend solutions that are geared towards meeting the needs of customers at each stage of their life or business.

“Where businesses are concerned, the Business Overdraft is a flexible solution which provides short term emergency funding and acts as a protective buffer for business cashflows. It gives customers’ comfort that they always have financial back up with the ability to manage the cost as our interest rates are specifically tailored based on a business’ credit profile and charged based on the amount of credit the business has used. This makes it a smart option for businesses needing to boost their cash-flow and meet the increasing demands that their businesses may have” Dlamini said.

Dlamini further said that given the flexible nature of the Business Overdraft which includes no fixed repayment term, customers are able to manage the availability of the facility by making payments as and when they are able.

Speaking to some of the common scenarios that have led customers to secure an FNB Business Overdraft, FNB’s Head of Commercial Banking, Chantell Littler said, often customers may be caught unaware with an increased demand for their products or services on the one hand and a shortfall of cash to meet the demand on another.

“This is where having a business overdraft becomes helpful and therefore it is advisable to have one at hand. If one looks at the value that this has the potential of unlocking for businesses, particularly within periods like the festive season, it is worth considering. This is particularly so when you consider that there is no real disadvantage to having it given that interest is paid only on what the business uses. Littler said.

Littler added that the FNB Business Overdraft is one of the ways in which the bank helps businesses run and grow into full scale maturity as it addresses working capital needs such that businesses always have cash on hand to buy stock and fund the debtor’s book when experiencing delays in payments from customers.

A common misconception on overdrafts is not only that they are expensive and are lengthy to apply for or difficult to stop and FNB’S Executive Head of Credit assured that this is not necessarily true or factual, encouraging customers to get in touch with the bank through the Customer Support Centre if they need to get facts particularly if they need to see whether they are eligible for one.

“It is true that a lot of banking myths end up being taken as universal truths, but it is true that customers are evaluated based on their own profiles and, at FNB, we have scaled our use of AI to score individuals, giving them much quicker feedback on whether they qualify for an overdraft. So, the process to get the loan has been made easier, and given that, when a business’ turnover flows into their FNB Business Current Account, the overdrawn funds get settled, it is also as easy to halt its use. We have even made applying for it easier though the Product Shop on the FNB App where the loan application is initiated on the App.” Dlamini emphasized.

Getting an FNB Business Overdraft made easy:

To apply for the FNB Business Overdraft, you need to have an active FNB Business transactional account and meet the following requirements:

• Be a registered business entity in Eswatini, with a valid trading license and tax clearance certificate.

• Have a good credit record and a positive cash flow.

• Provide your latest financial statements and bank statements.

To easily apply for the FNB Business Overdraft, contact your relationship manager or call 800 6100.