A business owner wanted to use R40,000 from her overdraft to “just finish off the loan” she’d taken out to buy some equipment.

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In her mind, the interest on the loan seemed low, so it felt like a smart move.
Move the debt from the loan to the overdraft and be done with it.

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Sounds reasonable, right?
One less repayment. Less stress.

But then we looked at the numbers.

📊 Revenue: R80,000/month
💸 Operating costs: R55,000/month
🧮 That leaves R25,000 in extra cash flow

Still sounds okay… until you add in the R40,000 from the overdraft.

That eats up the extra cash — and comes with a higher interest rate than the loan.
And what happens next month when cash is tight again and she needs that overdraft?
The balance just grows. And so does the stress.

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And, what if there’s a late-paying client? Or a seasonal dip in sales? That R25k quickly disappears—and now there's no buffer to absorb shock.

Here’s something most business owners aren’t told:

Overdrafts aren’t cheap.

Loans have fixed repayment amounts and fixed interest rates.
Overdrafts often have variable interest, which means they’re more expensive and less predictable.

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And unlike loans, overdrafts can be reduced or pulled at the bank’s discretion, leaving you exposed when you need them most.

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This is how the overdraft trap begins:​
➡ You move debt to your overdraft to “simplify”
➡ Your cash buffer disappears
➡ You start using the overdraft for monthly expenses
➡ The balance grows, interest rises—and you’re stuck cycling it month after month

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So what should she do instead?

✅ Increase her loan repayment monthly. Say, for example, R700/month
✅ Build a cash-optimised business

✅Keep the overdraft as a backup for bumpy months
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👀 I’m running a free webinar called From Chaotic to Consistent Cash Flow for business owners like her (and maybe like you?) — the ones who are doing well on paper but still feel cash-strapped and stuck.

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If you want to stop robbing Peter to pay Paul and build a system that actually supports you, sign up using this link.

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Here is some feedback from a previous webinar I ran: That was a very useful and well explained course. Very well explained, good practical examples. Easy to understand. Cash flow simplified really. Learnt a number of really good things. In fact I will go over it again and take notes this time. I don’t know why I didn’t the first time. And also doing it in 30 mins……perfect !! No need to drag it out and all that. - Raymond M

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