Which of these is an advantage of bank overdrafts as a form of finance?

Question

Quizplus · Accepted Answer

Bank overdrafts are easy to arrange and a flexible form of borrowing. They provide the borrower with the opportunity to withdraw money as needed up to a certain limit. This makes them ideal for short-term financing needs or bridging cash flow gaps. Additionally, they do not require any collateral and can be paid back as soon as the borrower has sufficient funds, making them a cost-effective option for many businesses. On the other hand, a disadvantage of bank overdrafts is that they can be expensive if they are not repaid quickly due to high interest rates or additional fees.

Which of These Is an Advantage of Bank Overdrafts as a Form