The current account loan (credit in current account) is the most important bank loan. It is granted in the form that the bank makes a certain amount available to its customer, which he can dispose of as required within the term according to his needs, which he can completely or partially cover again and then use again.
The loan generally has a term of up to one year, but in practice it is often extended by a further three months up to a year if the customer's creditworthiness is not in doubt.
If the bank customer only temporarily debits (“overdraws”) his account beyond his credit balance, one speaks of an overdraft.
The overdraft facility can serve various purposes:
as Working capital loan the temporary reinforcement of operating resources (for purchasing goods or raw materials, for paying wages or for other operational purposes)
as Seasonal Loan in times of particular financial stress (e.g. main shopping period); By selling the goods, the invested funds are released so that the merchant can cover the credit again
as Interim loan for pre-financing of facilities and construction projects; it is later, when the building has reached a certain level of production maturity, through long-term loans, e.g. B. Mortgage Loans, replaced.
The current account credit is granted either as an unsecured (= blank credit) or as a covered credit. In most cases, the banks require collateral (see also Loan protection). The following are possible:
the position of one or more guarantors,
the assignment of claims,
the pledging of movable objects (bargaining chip),
the transfer by way of security or
encumbrance of real estate in rem through a mortgage or land charge.
Die Kosten eines Kontokorrentkredites setzen sich aus den Sollzinsen, aus der Credit commission – soweit der eingeräumte Kredit nicht voll in Anspruch genommen wurde – der Sales commission und den Spesen zusammen.