Cash flow stress? Be cash-flexible!
Have the flexibility to overdraw your business account
Up to 5 000 euros (no origination or management fees)
Being cash-flexible means you’re always able to pay your bills, even when your expenditure is out of sync with your income. You can quickly deal with temporary cash shortages thanks to a Business Budget Facility.
Stay cash-flexible with a Business Budget Facility
A small cash reserve at all times
Go overdrawn on your business account by up to 5 000 euros.
Keep your cash flow in balance
Easily bridge the gap between expenditure and income.
Free with your current account
You pay nothing at all as long as your account remains in credit.
Here’s how a Business Budget Facility works:
- Your business account is almost empty
You can temporarily go overdrawn by up to 5 000 euros. - Money paid into your account is used to clear the debit balance
The overdrawn amount is automatically cleared as soon as money goes into your business account. - Your Business Budget Facility is always available
You can keep using your budget facility until the limit is reached.
Why stay cash-flexible?
Your business can continue operating as usual
Temporary cash shortages don’t have to disrupt your business. Continue making your day-to-day payments, even when you have less cash.
You come across as being professional
Honouring agreements and paying invoices on time strengthens the trust of your suppliers and business partners.
You’re prepared for any situation
Faced with unexpected expenses, customers paying late or volatile revenue streams? A Business Budget Facility ensures you can keep your business ticking over at all times.
Apply for your Business Budget Facility in just a few steps in KBC Mobile or KBC Touch:
Enter the amount of your Business Budget Facility: 5 000 euros.
Your Business Budget Facility always has a 5 000 euro limit. If you prefer a higher amount, an advance in current account lets you go overdrawn by 6 000 euros or more.
Sign and submit your application.
Find out whether your application has been approved within one business day. If it does get the green light, you can go overdrawn right away.
It couldn’t be any easier. You don’t have to submit any proof of investment or any other financial documents.
All you need to know about the Business Budget Facility
Is it true that there aren’t any origination or management fees to pay?
Yes, it is. You don’t pay any origination or management fees for a KBC Business Budget Facility. As long as your account remains in credit, you don’t pay anything. If you do overdraw your account, you only pay interest on the amount you use and only for the time your account is in the red.
What is the interest rate?
Interest is based on the base rate of interest for business credit, plus 2.00%. Suppose the base rate is 10.25%, the total rate of interest is: 10.25% + 2.00% = 12.25%.
Example:
If you go 1 500 euros overdrawn for 20 days, it will cost you approximately:
1 500 x 12.25% x 20 days / 360 days = 10.20 euros.
The interest charged is tax-deductible.
What is the maximum credit amount of the Business Budget Facility?
KBC provides 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.
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 origination and management fees.
To find out more, compare the different solutions for your working capital.
Who can benefit from a Business Budget Facility?
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.
How do I apply for and manage a Business Budget Facility?
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.
