Bank Overdraft vs Working-Capital Line: When to Switch

techadmin

Jul 16, 2025 — 1 min read

Overdrafts are convenient but can cost 14–18 % per year once fees pile up.

4 Signs It’s Time to Refinance

APR > 14 % after all charges.
Utilisation > 60 % on most days.
Personal guarantees tied to your family assets.
Exit fee if you ever close the overdraft.

Switch Strategy

Calculate your true annual rate by dividing total interest + fees by average balance.
Compare against a revolving working-capital line quote.
If savings ≥ 3 %, refinance and redirect freed-up cash to marketing.

Keywords: overdraft refinance UAE, working-capital credit, SME banking cost, APR calculation
Hashtags: #KlubAI #OverdraftRefinance #WorkingCapital #CostSaving #UAEBusiness

Disclaimer: Rates change often; confirm with your bank before deciding.

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