If you can get a loan always take it instead of an overdraft. A loan is paid back in regular monthly payments with a small amount of interest add. In other words you "buy" money and pay it back with a profit.
Banks don't like loans much these days as the interest rate is so low. Much more money can be made if the person's assets can be used as security for an overdraft rather than for a loan. Then there is interest on the overdraft which is variable and always sky high. The Banks think that an o/d is short term money but some firms never get out of o/d status.
In addition to interest you will be charged for every cheque cashed or cleared, for your statements, for every ATM withdrawal and bank withdrawal. All of these charges are added up and become part of the o/d and the whole lot attracts interest too. If you have a business o/d then the charges differ and so does the interest, neither in your favour. Banks actually don't have a penny to their name. They make money by "selling" people other peoples money for a fixed or variable term at a cost, namely interest.
They have to pay their expenses from this trading and use this as an excuse!
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