Overdraft is a safety net built into your Finom account. If your balance goes below €0, eligible payments still go through, up to a pre-approved limit of €500 to €20,000. Every incoming payment repays it automatically, and you pay interest only on the amount you use. There are no costs while you don't use it.
How Overdraft works
Overdraft works quietly in the background of your main wallet. Once it's active, you don't need to do anything:
A payment would take your balance below €0. If the payment is eligible and fits within your available limit, Finom covers it automatically and the payment goes through.
Your balance shows the difference. While you're using Overdraft, your main wallet shows a negative balance, with a minus sign. The Overdraft section just below it shows how much of your limit is still available.
Money comes in. Every incoming payment automatically goes towards the negative balance first, until your balance is back at €0 or above.
A payment is either covered in full or not at all. If a payment is larger than the part of your limit that is still available, it is declined.
A simple example
Your balance is €100 and you pay a supplier invoice of €400. Overdraft covers the difference, so the payment goes through and your balance becomes -€300. A few days later, a client pays you €1,000. The first €300 repays your Overdraft automatically, and the remaining €700 is yours to use as usual.
Your Overdraft limit
Your limit is the lowest your balance can go. It is between €500 and €20,000, and it's personal to you: Finom pre-approves it based on how you use your account.
Your limit isn't fixed forever. Finom reviews it from time to time, and it can grow as you keep using your Finom account.
Which payments are covered
Overdraft is designed for paying your suppliers and everyday business expenses. These payments are covered:
Card payments, in store and online
SEPA transfers
Direct debits and standing orders
Payments in EUR or payments done via “Convert & Pay”
These payments are not covered:
ATM withdrawals and cash advances
Crypto purchases
Gambling and other high-risk merchants
Finom subscription fees
Transfers between your own Finom wallets, currency exchange, and investment or savings products
If a payment isn't covered and your balance is too low, it will be declined, just as it would be without Overdraft.
Overdraft is meant for payments to suppliers and other businesses, not for moving money to yourself. If we notice that Overdraft is being used this way, we may suspend it.
How repayment works
You don't need to repay Overdraft manually. Every incoming payment goes to your negative balance first, whatever its type:
Incoming bank transfers
Card payments you receive
Card refunds and reversals
Cashback
This continues until your balance is back at €0 or above. Interest works separately: it isn't taken from your incoming payments. It is charged once a month, on the 1st. For all the details, see “How much does Overdraft cost?”.
You have up to 60 days to bring your balance back to €0 or above. Most customers are back in the black much sooner, as soon as their next invoice is paid.
Where you can see your Overdraft
You can see your Overdraft in 2 places:
Under your balance on the “Home” screen.
In the “Accounts” section, right under the total balance of your account.
Click on Overdraft to see how much you've used and how much is still available.
Who can use Overdraft
Overdraft is available to existing customers on a paid plan (Basic and above), when Finom's background checks show that you're eligible. Only the account owner can activate it. To find out how, see “How do I activate Overdraft?”
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