KBC Business Budget Facility
- Interest is tax-deductible
- You don't pay anything if you don't overdraw your account
- Digital application process and immediate availability
What is a KBC Business Budget Facility?
KBC Business Budget Facility is a flexible credit line that allows you to overdraw your account up to a certain amount. You can continue to withdraw cash until you have reached the pre-agreed limit and repay the money at your own pace. A cash reserve allows you to anticipate foreseen and unforeseen cash deficits.
KBC offers several forms of revolving credit for your working capital. For business owners often faced with small cash deficits of up to 5,000 euros, the KBC Business Budget Facility is an ideal choice.
If you are looking for a solution to bridge the gap between your expenditure and income, and you regularly have cash deficits of more than 5,000 euros, we highly recommend the KBC Advance in Current Account or the KBC Business Credit via Straight Loans. These are subject to credit origination and management fees.
To find out more, compare the different solutions for your working capital.
You don’t have to pay any credit origination or management fees for the KBC Business Budget Facility. So, as long as your account remains in credit, you pay nothing at all!
If you do overdraw your account, you only pay interest on the amount actually overdrawn and only for the number of days your account is in the red. Interest is based on the base rate of interest for business credit (which has been 10.25% per annum since 1 January), plus 2.00%. The base rate is reviewed every six months.
Example:
- If you go 1 500 euros overdrawn for 20 days, it will cost you around 10.21 euros ((1 500 euros x 12.25% interest x 20 days) / 360 = 10.21 euros for 20 days).
And that interest is tax-deductible into the bargain.
If you take out ‘Remission of Debt in the event of Death’ cover on top of your KBC Business Budget Facility, a supplementary rate of 1.25% for each insured person will be charged. In the above example, the total amount of interest then comes to 11.25 euros for going overdrawn for 20 days.
If you are looking for a convenient way to cover small, temporary cash deficits or unexpected business expenses, the KBC Business Budget Facility is the ideal solution, as it allows you to overdraw your business account.
Business owners looking to negotiate a supplier discount may also benefit from a cash reserve or revolving credit, as a discount often applies when suppliers are paid immediately in cash.
We provide you with a Business Budget Facility of 5,000 euros, which is placed on your business account for you to use at any time to cover your business expenses.
You can monitor, manage and sign for your budget facility online in KBC Mobile, KBC Touch and the KBC Business Dashboard. You can also use KBC Touch and KBC Mobile to apply for a new credit facility. No paperwork is involved in drawing on this cash reserve and paying back what you've used. For instance, you don't have to submit any proof of investment.
