Overview

The Commercial Overdraft Line at Old National Bank is a revolving credit facility that allows qualified commercial clients to overdraw their business checking account up to a preapproved limit. This product is engineered for companies that require immediate access to liquidity to smooth timing differences between receivables and payables, bridge seasonal revenue gaps, or respond quickly to unanticipated expenses without disrupting day-to-day operations.

Key Features

• Revolving availability: Funds become available again as balances are repaid, offering ongoing access to short-term credit without repeatedly reapplying.
• Customized limits: Borrowing limits are tailored to the cash flow profile, revenue size, and creditworthiness of each business.
• Same-day access: Overdraft amounts can be accessed immediately through the linked business checking account to cover payments, checks, ACH items, and debit transactions.
• Competitive pricing: Interest and fees are structured to provide predictable short-term borrowing costs, with clear disclosures of any periodic fees or per-item charges.
• Integrated account management: Seamless integration with online banking and account reporting helps treasurers and small business owners monitor usage and manage repayments efficiently.
• Flexible term: Designed for short-term use with regular reviews rather than rigid multi-year commitments, making it ideal for opportunistic and cyclical financing needs.

Benefits for Businesses

Old National Bank’s Commercial Overdraft Line empowers businesses with reliable liquidity and operational flexibility. Common benefits include:

• Improved cash flow stability: Smoothes timing mismatches between incoming revenue and outgoing obligations.
• Enhanced vendor relationships: Ensures timely payment of suppliers and service providers, which can support favorable terms or discounts.
• Payroll assurance: Protects reputation and staff morale by providing funds to meet payroll on schedule.
• Opportunity readiness: Allows businesses to act quickly on limited-time opportunities such as bulk purchasing, emergency repairs, or short-term marketing initiatives.
• Administrative simplicity: Single-line access tied directly to the business checking account reduces administrative overhead compared to multiple short-term loan agreements.

Eligibility and Documentation

Eligibility for an overdraft line is assessed on a case-by-case basis, taking into account the business’s financial history, deposit activity, credit profile, and industry risk. Typical documentation requirements include:

• Recent business bank statements and account history
• Business tax returns and financial statements
• Personal and business credit information
• Proof of business ownership and formation documents
• Accounts receivable and payable aging reports, if relevant

Additional documentation may be requested for larger limits or for businesses with complex cash flow characteristics. Collateral and guarantees may be required depending on the credit assessment.

Pricing and Fees

Pricing for the Commercial Overdraft Line at Old National Bank is competitive and transparent. Fees and pricing elements may include:

• Interest or utilization charges: Applied on the daily overdrawn balance until repaid.
• Commitment or maintenance fees: Periodic fees for keeping the line available, applicable on select agreements.
• Per-item fees: Charges for returned items or extraordinary processing, where applicable.
• Non-sufficient funds (NSF) handling: Managed in accordance with the account agreement and regulatory guidelines.

All fees and interest rates are disclosed at the time of application and documented in the credit agreement. Clients receive clear statements showing usage, interest accruals, and fees to support transparent financial planning.

How It Works

1. Application and approval: Businesses apply with required documentation. Old National Bank evaluates creditworthiness and cash flow to set a limit and pricing.
2. Account linkage: Upon approval, the overdraft line is linked to the business checking account for real-time access.
3. Use of funds: The business can overdraw up to the approved limit to cover checks, ACH items, debit transactions, and other authorized disbursements.
4. Repayment: Repayments occur as deposits clear; interest is charged on daily outstanding balances. The line replenishes up to the original limit as payments are made.
5. Ongoing review: Periodic reviews ensure the limit remains aligned with business needs; adjustments can be made based on performance and relationship history.

Risk Management and Best Practices

Old National Bank partners with businesses to manage overdraft risk responsibly. Recommended best practices include:

• Maintain accurate cash flow forecasting and update it regularly.
• Use the overdraft line as a complement to other financing tools for short-term gaps, not as a substitute for sustained deficits.
• Establish internal controls and approval workflows for disbursements to avoid unnecessary overdraft usage.
• Consider combining the overdraft line with an accounts receivable management strategy to accelerate collections.
• Monitor account activity through online banking and set alerts for balance thresholds.

Why Choose Old National Bank

Old National Bank delivers personalized lending solutions backed by experienced commercial bankers who understand the challenges of running a business. With flexible structuring, transparent pricing, and integrated account services, the Commercial Overdraft Line is designed to be a reliable short-term liquidity tool that supports operational continuity and growth.

Whether your business is seasonal, project-driven, or growing rapidly, Old National Bank can tailor overdraft solutions that align with your cash flow realities and strategic objectives.