Bank Overdraft vs Working-Capital Line: When to Switch

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

4 Signs It’s Time to Refinance

1. APR > 14 % after all charges.
2. Utilisation > 60 % on most days.
3. Personal guarantees tied to your family assets.
4. 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.