What is an Overdraft?

An Overdraft is a financial arrangement where a bank allows a business or individual to withdraw more money from their account than what is available. It acts as a short-term borrowing facility to meet immediate cash flow needs.

Key Features of an Overdraft:

1. Flexible Borrowing: Allows businesses to withdraw extra funds as needed, up to a pre-agreed limit, even if the account balance is zero.
2. Interest on Used Amount: Interest is charged only on the overdrawn amount, not the entire limit.
3. Short-Term Financing: Ideal for short-term needs such as covering working capital gaps or urgent expenses.
4. Revolving Facility: It’s a revolving credit, meaning as soon as the overdraft is repaid, the business can borrow again within the limit.
5. Unsecured or Secured: Overdrafts can be unsecured (without collateral) or secured against assets like property, inventory, or receivables.

Why an Overdraft is Useful:

• Cash Flow Management: Helps businesses manage temporary cash shortages, ensuring smooth operations.
• Avoiding Missed Payments: Ensures that critical payments like supplier invoices, salaries, or bills are not delayed due to lack of funds.
• No Fixed Repayment: Offers flexibility in repayments, as there’s no fixed schedule, allowing businesses to repay as per their cash flow situation.

What Uttishtha Advisory Does:

Uttishtha Advisory provides a wide range of advisory services, helping businesses with financial solutions and strategic planning.

Key Services of Uttishtha Advisory:

1. Financial Consulting: Provides expert advice on managing finances, debt structuring, and fund-raising strategies.
2. Overdraft Management: Advises businesses on using overdraft facilities effectively to manage short-term liquidity challenges.
3. Loan Advisory: Helps clients secure term loans, working capital loans, or other financial products suited to their needs.
4. Corporate Restructuring: Assists businesses in restructuring their operations and finances to improve performance and reduce financial stress.
5. Risk Management: Provides strategies to mitigate financial risks, ensuring long-term sustainability.
6. Insolvency and Bankruptcy Support: Guides distressed businesses through insolvency proceedings and helps prepare resolution plans under the Insolvency and Bankruptcy Code (IBC).
7. Credit Rating Advisory: Helps businesses improve their credit rating by providing insights into financial performance and advising on strategies to boost their creditworthiness.
8. Valuation Services: Offers business valuations for mergers, acquisitions, and investment decisions.
9. Turnaround Solutions: Provides leadership during challenging times to help businesses overcome crises and achieve recovery.

Why Uttishtha Advisory is Required:

1. Expert Guidance: With in-depth domain expertise, Uttishtha Advisory helps businesses navigate complex financial situations.
2. Customized Solutions: Provides tailored strategies based on the unique needs of the business, whether it’s restructuring, funding, or managing an overdraft.
3. Improved Financial Management: Helps businesses optimize their financial resources and manage debt, leading to better financial health.
4. Crisis Management: Offers support in distressed situations such as liquidity crunches or financial difficulties, ensuring businesses get back on track.
5. Access to Better Credit: Improves a company’s financial standing and creditworthiness, helping them secure loans or overdrafts at better terms.