A bank overdraft is repayable on demand.
A long-term loan is repayable at a future date, or more likely in installments over a period.
If times are hard (or even if they are not), there are obvious advantages to having a long-term loan instead of an overdraft, or as well as an overdraft.
So long as you do not breach the terms of the agreement, you cannot be forced to pay it back quickly.
This gives you peace of mind.
A long-term loan is repayable at a future date, or more likely in installments over a period.
If times are hard (or even if they are not), there are obvious advantages to having a long-term loan instead of an overdraft, or as well as an overdraft.
So long as you do not breach the terms of the agreement, you cannot be forced to pay it back quickly.
This gives you peace of mind.
No comments:
Post a Comment