Authorised Overdraft in a Commercial Current Account

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Advantages of an Authorised overdraft:

• non-specific drawing
• drawing and repayment of the loan according to the client's current requirements and options open to them (certainty of financial reserves for unexpected expenditure)
• a quick form or financing with low administrative demands

The Authorised overdraft allows you to:

• Repeatedly draw on funds up to the debit balance
  • each deposit made in the account repays the loan
  • this renews the possibility of again drawing on funds up to the agreed limit of the Bank overdraft
  • you can draw on the loan for a period of up to 180 calendar days
  • if the account balance is settled and and comes to zero or has a positive balance during this period, the Authorised overdraft can be used again for another period of 180 days (counted from the date when the overdraft is drawn on again)
• Have the limit set according to individual assessment
  • up to a limit of CZK 3,000,000 (entrepreneurs)
    • on the basis of individual assessment of financial situation according to accounting statements presented
  • up to CZK 500,000 (entrepreneurs, housing associations, associations of flat owners)
    • for existing clients of KB with a current account in KB for at least 6 months
    • on the basis of assessment of turnover of funds in their current accounts held in Komerční banka
  • for municipalities, cities, regions and clusters of municipalities, setting of a limit for the authorised overdraft according to their tax incomes and regular grants
  • entities established by a municipality, small town, city or region
    • for existing clients of KB with a current account in KB for at least 6 months
    • on the basis of assessment of turnover of funds in their current accounts held in Komerční banka
• Gain a loan with a simple form of security
  • in the case of entrepreneurs, the Authorised overdraft is secured using co-acceptance of a covering blank bill of exchange
  • for an existing KB client – no security required
    • up to the level of CZK 500,000
    • in the event of sufficient turnover of funds in his or her current accounts held by Komerční banka
  • municipalities, small towns, cities, regions, clusters of municipalities
    • no security

Requirements for an Authorised overdraft:

In order to arrange an Authorised overdraft, you will need the following documents:

• Entrepreneurs applying for an Authorised overdraft up to the level of CZK 500,000:
  • application including an Affidavit, Consent to handover of information and Information about ownership relations and property shares
  • current documents proving authorisation to do business
• Entrepreneurs applying for an Authorised overdraft over the level of CZK 500,000 or new clients:
  • application including an Affidavit, Consent to handover of information and Information about ownership relations and property shares
  • current documents proving authorisation to do business
  • final accounts including income tax return and auditor's report, if this report is available (clients with accounts)
  • current financial statements including the balance sheet and profit and loss statement (clients with tax records)
  • income tax return including appendices and supplementary information (clients with single-entry accounting)
• Municipalities, small towns, cities and regions:
  • application including an Affidavit, Consent to handover of information and Information about ownership relations and property shares
  • statement on the budget having been met for municipal budget
  • balance sheet
  • decision by the municipal council or extract from a decision by the municipal council containing consent to acceptance of the Authorised overdraft
• Entities established by a municipality, small town, city or region:
  • application including an Affidavit, Consent to handover of information and Information about ownership relations and property shares
  • foundation deed
  • decision by the municipal council or extract from a decision by the municipal council containing consent to acceptance of the Authorised overdraft
• Clusters of municipalities:
  • application including Affidavit and Consent to handover of information
  • contract on creation of a cluster of municipalities including the articles of association of the cluster
• Housing associations:
  • application including Affidavit and Consent to handover of information
  • current articles of association and minutes of the members' meeting, at which the members' meeting approved drawing on the loan in the form of an Authorised overdraft for the purpose of financing operational requirements
• Associations of flat owners:
  • application including Affidavit and Consent to handover of information
  • current extract from the register of associations of flat owners, current articles of association and minutes of the meeting of flat owners, showing that they approved drawing on the loan in the form of an Authorised overdraft for the purpose of financing operational requirements relating to management of the building and approved contributions by flat owners towards costs relating to the purpose of the loan

How to get an Authorised overdraft?

• contact your relationship manager
• call the free KB Info line on 800 521 521

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