Lines of Credit / Authorized Overdrafts

Even the most successful business can run into unexpected costs from time to time. An Authorized Overdraft or a Line of Credit can provide peace of mind when your finances need a little time to catch up to your circumstances.


  • Rest easy knowing you have a reuseable safety net. Once you pay down your LOC or AOD, you can use it again!
  • Feel confident you've handled your money wisely as you only pay interest on the balance of the LOC or AOD that you use and interest rates are usually lower than that of credit cards.
  • Save money as your business earns profit share on the loan interest you pay!

An Authorized Overdraft is revolving credit connected to your business chequing account that allows your withdrawals to exceed your deposits up to a determined amount. You pay on your AOD every time you deposit to your chequing account. Your AOD amount will be determined between you and your lender.



A Line of Credit is a revolving loan with a flexible repayment schedule. This allows you to re-advance money on the LOC without re-applying each time you need to borrow money, as long as the total of the borrowed funds does not exceed the credit limit (which will be determined between you and your lender).

AODs and LOCs are a great solution for businesses that need financing for operating purposes such as accounts receivable or building up inventory. If your business could benefit from having ready cash, we would like to invite you to meet with an Encompass Credit Union Business Account Manager. They will sit down with you to establish an authorized overdraft (AOD) or a line of credit (LOC). Both are designed to be flexible to accomodate your specific financing needs.

Once established, cash can be advanced to your account for specific amounts and terms or set up as an overdraft on your business chequing account so you can access it readily. Your Business Account Manager will meet with you annually to ensure that the limits that were established continue to meet your needs.



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