KBC Brussels Business Credit via Straight Loans
- Flexible use of your straight loan
- Certainty about interest payable on the amount drawn down
- Full online management of your finance needs
What is a straight loan?
A KBC Brussels Business Credit via Straight Loans, also referred to as a 'straight loan', enables you to respond to the more substantial operating requirements of your business in the short term. You can also use it to supplement the KBC Brussels Advance in Current Account and fund your business activities when you can accurately estimate how much you’ll need and for how long.
All there is to know about the KBC Brussels Business Credit via Straight Loans
When is a straight loan worth considering?
You can use a straight loan to finance your temporary cash needs in the short term. You must therefore be able to determine in advance how much you want to borrow (i.e. up to the credit limit) and for how long (i.e. until the date on which you pay it back).
How does a straight loan work?
You can draw down one or more short-term straight loans at any time, provided you stay within your credit limit. KBC Brussels will then transfer an amount to your current account to cover payments you need to make. At the end of the drawdown period of the straight loan, we debit your current account with the amount borrowed plus the interest due.
How much can be funded with a straight loan?
You decide on the limit for your line of business credit together with your KBC Brussels relationship manager, based on your financial plans and operational needs.
As soon as we allocate the credit line to your KBC Brussels business account, you can draw down the business credit in the form of short-term straight loans. You can do this online using KBC Brussels Touch or the KBC Brussels Business Dashboard, or through your KBC Brussels Bank branch.
The minimum amount and term of the line of business credit depend on how you want to manage your straight loans. If you decide to draw your straight loans down yourself in KBC Brussels Touch or the KBC Brussels Business Dashboard, the minimum amount to be drawn down is 25,000 euros and the minimum term seven days.
What are the benefits of a line of business credit?
- You can deal simply and flexibly with changing capital requirements.
- The credit line offers considerable flexibility in terms of how much can be drawn down and for how long. You pay the Euro Interbank Offered Rate (EURIBOR) plus a margin.
- Interest and charges are both tax-deductible.
- The limit of the credit line can be adjusted depending on the season.
How much interest do I have to pay?
We set the rate when the line of business credit is being registered. The interest rate when drawing down a straight loan is based on the EURIBOR plus a margin that is guaranteed at the time of each drawdown.
You have the certainty of knowing the interest rate to be charged on the date the straight loan becomes due. You only pay interest on the amount you draw down.
Which other charges, apart from interest, are associated with the business credit?
- Credit line fee
To draw on the KBC Brussels Line of Business Credit, you pay a credit line fee every three months, which is calculated for the average amount of the line of business credit (or the largest amount drawn down, if larger).
- Drawdown fee
Each time you draw down a straight loan you pay a drawdown fee.
- Credit origination fee
For drawing up the credit contract, you will be charged a one-off origination fee based on the credit amount.
- Management fee
The KBC Brussels Line of Business Credit via Straight Loans is part of a single umbrella credit facility. You pay a fixed amount every three months for the management of the facility.
- Default interest
If there are no or insufficient funds on your account on the date the straight loan is due, we will charge default interest on the principal due at that time.
How does this facility differ from an advance in current account?
An advance in current account enables you to overdraw your account up to an agreed amount. The amount in question is paid back automatically from the income you receive in your account. You only pay interest for the period you draw down the credit. To find out more, compare the different solutions for your working capital.