Advantages And Disadvantages Of Overdraft

Kapoor, J. R., Dlabay, L. R., Hughes, R. J., & Hart, M. M. (2016). Focus on Personal Finance.

This morning, Mr. Marchese called the branch seeking approval of an overdraft. Since the loan is in Workout, the branch transferred the call to my attention. Dan requested that I approve an overdraft, a $1,500 payment to Amex. I told him I can’t approve the overdraft unless there are readily available funds in the account. He replied that, earlier this morning, he transferred $3,500 from the attorney trust account to the business checking account therefore the OD should be approved.

Through the online mode, the payday loan can be quicker than ever. When the loan gets approved from the side of the lender, the amount is deposited in the borrower bank account over the internet. Thus the borrower does not require spending more time for getting the loan amount and can easily pay the sudden charges for which the borrower took the credit. When the time comes for repayment of the loans, the lender automatically deducts the refund amount from the bank account of the borrower after the due date. Thus the borrower does not go through any hassle while applying for the loan or during the repayment also.

Mobile Phone Repair Service could consider bank overdraft to be able to survive. Overdraft helps business to overcome the difficulties throughout the year because they are easy and quick arrange, it provides good cash flow backup with the minimum Struggle. The advantage of bank overdraft is the interest is only paid on amounts borrowed also it’s flexible for Mobile Phone Repair Service. However, the disadvantage of bank overdraft is that it cannot be used for large borrowing also the business can face large charges if they go over the agreed overdraft time period, therefore, the manager should monitor the overdraft time period to be on the safe

• Overdraft protection, up to the amount available for cash advances under your credit limit, when linked to your Regions checking account

In the Private Sector, there are many choices to be made by Business managers regarding which “projects” to borrow for and which “projects” to invest in.  These choices often contain a great deal of ______________________ as well as the potential for benefits (profits).

Blank, C. (1999-2012). The Pros & Cons of Using Wireless Internet Services. Retrieved from EHow: http://www.ehow.com/about_5348495_pros-using-wireless-internet-services.html

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There can be charge on intrigue and expenses of any unapproved overdraft as set out in the rules.

Banks are able to prevent kiting from occurring by placing a hold on checks over a certain dollar amount. This will ensure the funds are legit and valid. Banks are also able to watch for multiple check deposits and checks written with the same dollar amount. In addition, banks can require a bank officer’s approval on any drawings against uncollected funds, overdrafts, or wire transfers, they also should perform daily reporting of all drafts against uncollected funds. Kiting can be detoured, however banks must ensure they have the proper internal controls in place to ensure they do not fall victim to kiting.

What are the pros and cons of MRI scans? (2012). Retrieved April 9, 2014, from doc2doc.bmj.com/forums/open-clinical_radiology_pros-cons-of-mri-scans

The money quantities of overdraft protection are differing by account and by bank. In some cases, the client needs to demand the calculation of overdraft security. If the overdraft protection is used extremely, the monetary institute can eliminate the security from the account.

This case study analyzed five different projects Target Corporation had to decide on capital spent for which project created the most value and the most growth for the company and its shareholders. By analyzing the financial statements and exhibits of each project, I was able to determine the positives and negatives of each of these alternatives. The alternatives were Gopher Place, Whalen Court, The Barn, Goldie’s Square, or Stadium Remodel.

Using a minimum-cash balance approach is a safe way for a business to make sure that it always has a cash balance in reserve. It guarantees that the business will always have a certain amount of cash asset to fall back on. This is a very limiting and unrealistic approach to managing a business' working capital though. Cash is just one component of working capital. A business could be flush with cash but have liabilities that exceed that balance and have a negative working capital balance. A good business needs to think beyond a mental cash framework and think broader to include other ramifications to the overall profitability and balance sheet stability.

There however are challenges in the industry occasioned by uncertainty on future spending on construction projects by the government. Moreover, the cost of doing business and the ability to increasingly make revenue have created a challenging environment for the construction firms. Therefore stakeholders in the construction industry are concerned with whether the government would increase its spending and whether the public construction projects will be available in the future since less than 10 percent are currently financing their clients.