Overdratfs have limits to how much you can borrow therefore if you are going to take a risk an overdraft would be better because you would loose less money if it went wrong.
it is better than an overdraft becaause the interest rate is a fixed cost so you know exactly what you need to pay of aand with an overdraft, you can keep spending forgetting how much of your overdraft youve used, and you may not know how much your spending or how to pay it back. Hollie b :)
banks are able to issue fines for those who go into the 'overdraft' on their account balance, therefore it would be better when you are borrowing a large amount of money to take a loan as the interest rates on the loan would work out less than the fine for the overdraft???
A loan is a method of borrowing if you are constatnly in debt or have a larger debt. This is because the rates for overdraft can change at short notice so will not be as beneficial over a longer period of time.
Tommy: A loan may be a better option than an overdraft, because usually an overdraft is a short term cash increase to help solve problems that you may need for the short term, where as a loan the government have schemes and grants to give businesses if they take out a loan and you can have that loan for longer and may help the business out in the long term, and the interest rates for a loan is cheaper than the ones for an overdraft.
If a business needs to borrow a large sum of money to fund expansion e.g. a new store then they would use a loan because there is a limit of how much you can overdraft and it wouldn't be enough for the business
because instead of owing loads of money to the bank you can take out the money you need and pay it back bit by bit every month so it's better for people who get paid each month maisie
Holly Lawson says: Overdraft has a higher interest rate so a loan would be better if tou know that you the business will be having cash-flow problems for a long period of time. It also has lower interest rates.
A loan is better than an overdraft because often the charge recieved from entering an overdraft is often more than the interest rates of a loan because a business is usually able to get a better loan interest rate. Also, an overdraft has a limit, which when passed, will incur a higher charge. A loan is always the same interest rate, which makes it cheaper.
because you have sort of control over how much money you borrow in the first place
ReplyDeleteizzi
When you have big debt that is bigger than the nexts month opening balence.
ReplyDelete-Tom
Overdratfs have limits to how much you can borrow therefore if you are going to take a risk an overdraft would be better because you would loose less money if it went wrong.
ReplyDeleteOllie
it is better than an overdraft becaause the interest rate is a fixed cost so you know exactly what you need to pay of aand with an overdraft, you can keep spending forgetting how much of your overdraft youve used, and you may not know how much your spending or how to pay it back.
ReplyDeleteHollie b :)
gianni
ReplyDeletewhen you need to pay a bill or bills is when a loan is better than overdraft you could lose more money than you have
Charlotte Mills:
ReplyDeleteA loan is better than an overdraft because you have a larger amount of time to pay it back and it is genrally cheaper to pay than overdraft.
banks are able to issue fines for those who go into the 'overdraft' on their account balance, therefore it would be better when you are borrowing a large amount of money to take a loan as the interest rates on the loan would work out less than the fine for the overdraft???
ReplyDeletesome shizzz along these lines?
Charlie Cooper
A loan is a method of borrowing if you are constatnly in debt or have a larger debt. This is because the rates for overdraft can change at short notice so will not be as beneficial over a longer period of time.
ReplyDeleteMatt Fuller
Tommy:
ReplyDeleteA loan may be a better option than an overdraft, because usually an overdraft is a short term cash increase to help solve problems that you may need for the short term, where as a loan the government have schemes and grants to give businesses if they take out a loan and you can have that loan for longer and may help the business out in the long term, and the interest rates for a loan is cheaper than the ones for an overdraft.
If a business needs to borrow a large sum of money to fund expansion e.g. a new store then they would use a loan because there is a limit of how much you can overdraft and it wouldn't be enough for the business
ReplyDeleteChris Tyson
because instead of owing loads of money to the bank you can take out the money you need and pay it back bit by bit every month so it's better for people who get paid each month
ReplyDeletemaisie
when you want to pay for a bill a loan is more suitable becuase you wont lose money if you used a overdraft
ReplyDeleteHolly Lawson says:
ReplyDeleteOverdraft has a higher interest rate so a loan would be better if tou know that you the business will be having cash-flow problems for a long period of time. It also has lower interest rates.
tyánni; i don't know
ReplyDeleteA loan is better than an overdraft because often the charge recieved from entering an overdraft is often more than the interest rates of a loan because a business is usually able to get a better loan interest rate. Also, an overdraft has a limit, which when passed, will incur a higher charge. A loan is always the same interest rate, which makes it cheaper.
ReplyDeleteAnthony Bench