The current account overdraft is a short-term loan with which the bank keeps a specific sum available to the customer in a current account. The accredited person can use the credit several times but must maintain a balance between withdrawals and remittances. The credit opening short term loans granted may be short, or without guarantee, or guaranteed, or granted against a specific personal guarantee (surety, pledge, and mortgage).
Disposal operations (or self-liquidating operations ) include: the bank discount, the advance on the portfolio subject to collection and factoring .
The disinvestment operations can be with recourse (if the third party who has to pay is in default, the bank rivals its customer who is required to repay the loan beyond the expenses) or without recourse, a formula that raises the bank’s customer from any liability in case of non-fulfillment of the bad credit payday loans.
The bank discount allows the customer of the bank to obtain a sum of money equal to the amount of a credit not yet expired and claimed from a third party, subject to collection .
The bank discount agreement provides that the customer must guarantee, in addition to the actual existence of the credit, also to be solvent. The sale takes place with recourse.
The bank discount includes two formulas: through small castle or in isolated form:
The discount castle is a credit line that the bank immediately makes available to the customer. It corresponds to the maximum amount of bills presented to the bank and is equal to the credit granted;