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Business Overdraft Protection
Flexible solutions to cover your business transactions should your checking account become overdrawn.
Business Checking Overdraft Protection Options
Choose the overdraft protection option that works the best for your business, including lines of credit or an automated transfer from another Merchants Bank account. Both options provide peace of mind knowing that your business checking account is protected if it becomes overdrawn.
- Small Business Overdraft Line of Credit
- Business Overdraft Line of Credit
- An automatic transfer from your Merchants Bank business checking or business savings* account
- An automatic transfer from a Sweep account
Overdraft Lines of Credit
With an overdraft line of credit, your business has to apply like any other type of loan and may be approved for a specific amount. Once approved and in place, the line of credit is a revolving line that will transfer money into your business checking account to cover inadequate funds. Both of our business line of credit options transfer in specific increments ($300 for Small Business and $500 for Business).
Some businesses find an overdraft line of credit more appealing compared to an automatic transfer because it may help avoid fees associated with overdrafts or returned payments, allows the business to build credit and can also aid in cash flow management. Have a conversation with your banker to determining which option is most beneficial for your business based on your needs and goals.
Small Business Overdraft Line of Credit
- Available to qualified smaller home-based or sideline businesses in amounts of $500-$2,500
- Provides coverage for businesses with a Merchants Bank Small Business Checking account
- Interest rate of 15.59% APR and annual fee of $30
- Funds from this revolving line of credit will transfer in increments of $300
- Monthly payment amount is determined by the outstanding line of credit balance
- Interest begins to accrue as of the date of the transfer on the amount of the funds advanced, but you will not be charged a fee for the transfer itself
- Flexible payment options include monthly billing or automatic payments
Business Overdraft Line of Credit
- Available to qualified for-profit businesses, who have been in business for at least 12 months, in amounts of $1,000-$25,000
- Provides coverage for businesses with a Merchants Bank Business Checking, Interest-Bearing Checking or Small Business Checking account
- Interest rate of Prime + 4% with a floor of 5.5% and annual fee of $50
- Funds from this revolving line of credit will transfer in increments of $500
- Monthly payment amount is determined by the outstanding line of credit balance
- Interest begins to accrue as of the date of the transfer on the amount of the funds advance, but you will not be charged a fee for the transfer itself
- Flexible payment options include monthly billing or automatic payments
* Account charges will apply if the number of transfers exceed savings account parameters.
Additional Resources
Treasury Management
Dedicated to your success, we provide your business with tools to manage your corporate cash efficiently and protect your financial accounts from fraud.
Credit Card Processing
We make processing and accepting credit card, debit card and gift card payments easy and efficient for your business.