Bank Accomodation

The bank accomodation is an umbrella term for loans granted by a credit institution on the current account of the borrower. They serve to bridge short-term liquidity bottlenecks. Within the granted credit line, the overdraft can be drawn down and repaid at any time.

The best-known type of bank accomodation is the overdraft facility for private individuals. For companies, for example, the working capital loan for financing current assets is an overdraft facility.