Can you state brief difference between Revolving Credit Facility and Overdraft?
I am confused they are same.
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Deficits
They are similar but:
Overdrafts do not have fixed repayment schedules or terms....though the bank can demand immediate repayment. There is an agreed maximum amount. Withdrawals and repayments are very flexible.
Revolving credit: think of a credit card. More rules about repayment amounts etc but you can use the facility flexible and the bank cannot demand immediate repayment.
Thanks tutor
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