Why Everyone Hates Bank Overdraft: You Can’t Figure Out the Rules

If you are a small business owner or the company’s bookkeeper, you probably are looking at your bank account quite often.  Like most people, it must drive you crazy when you see bank overdraft fees among the list of charges. Banks purposely make it hard for its customers to understand their overdraft rules.  It is all because banks make an estimated $13-$33 billion per year from those over drawn accounts.

Let’s say you deposited a client check yesterday into your business bank account.  That check hasn’t cleared yet and you had to make payroll so your account is overdrawn. Even What is an Advance on Your Business Credit Cards?though a bank could clear that deposited check within seconds due to today’s electronic bank clearing house, they do not. As a result, you have $150 in bank overdraft fees for overdrawing 6 payroll checks. In a worst-case scenario, the bank does not cover those payroll checks & you have to go back and tell your employees to redeposit their salary checks in 2 days costing you even more money, time, and embarrassment.

Scenario’s like this happen to every single business owner but for the first time, there is an answer. An Overdraft Line of Credit from Financing Solutions will monitor your business bank account. We will email you daily as to the bank balance or you can set up an automatic funding rule. Financing Solutions will then give you a line of credit you can use for whatever you like including covering overdrafts or smaller expenses. You pay the line back when cash flow improves costing $10 per week per $500 drawn.

Doesn’t it make complete sense? You eliminate your bank overdraft fees. Financing Solutions develops a long term client for its line of credit. Commercial banks don’t make billions from us all. Everyone wins, except the bank that is.

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