This article explains:
What is Overdraft
Pleo Overdraft allows for a negative Wallet balance. Your organisation's overdraft limit is automatically calculated based on a variety of financial factors.
The benefits of Overdraft
Even if your Wallet is empty, you'll still be to cover a variety of expenses:
Online and in-store purchases made with Pleo cards
Invoices (if you're in the UK or Germany)
Fees for using Pleo
Reimbursements to employees for out-of-pocket, mileage, or per diem (Germany and Sweden only) expenses
Pleo Overdraft is interest-free as long as you pay back the outstanding balance on or before the charging date. Even if you opt for a repayment plan with interest, this option can help to keep your business operations going during times of delayed cash flow.
How to activate Overdraft
If your organisation qualifies, then the admin(s) for your Pleo account can enable Overdraft on the Wallet page:
Click "Activate Overdraft".
Set your Overdraft limit (it can be less than or equal to the amount we've calculated).
Please take note of the activation fee that will be deducted from your Wallet.
Tick the auto repayment box (if you wish to use Overdraft interest-free). If you don't select this option, an interest fee will be charged (see the section on fees further down in this article).
You'll be prompted to set up a direct debit to cover the overdraft amount at the end of the month. If you don't choose auto repayment, then you will still need to top-up at least 10% of your Overdraft limit each month. For example, if you're Overdraft limit is 50,000 euros, then you'll be prompted to top-up at least 5,000 euros at the end of each month. This ensures that accrued interest is paid monthly. The full outstanding balance will need to be settled at the end of the 12 months (from the day of activation).
Confirm by clicking "Activate Overdraft".
How to change (or deactivate) your Overdraft setup
To make any changes (including deactivation):
Go to the Wallet page.
Click on “Manage Overdraft”.
It's possible to decrease or increase your Overdraft limit after activation:
Increasing the limit: You will be required to pay the difference between the original activation fee and the new one (the "new one" being 2% of your new Overdraft limit).
Decreasing the limit: There will be no extra charge. However, the original activation is non-refundable (whether in part or whole). This also applies if you decide to deactivate Overdraft.
It's important to know that Pleo's automatic calculation of your maximum Overdraft limit can change from one day to the next. So if you decrease your limit, it might not be possible to increase it again (at least not for some time). Your eligibility for the functionality itself might also change, so deactivating Overdraft could mean you won't be able to re-activate it again. If in doubt, please contact your customer success manager before making any changes.
As mentioned in the above activation section, there are two ways of paying back an Overdraft amount:
Automatic repayment means that the full balance will be automatically debited from your bank account to your Pleo Wallet at the end of each month. This option means you will not pay any interest, even if your Wallet balance has been negative during the month.
A manual Wallet top-up before the month's end can also be interest-free so long as the funds reach your Wallet before the billing date. The billing date is the last business day of the calendar month.
You can choose to repay the negative balance over 12 months. In this scenario, you wait to pay back the total balance until the end of the year (via direct debit), while still paying interest each month. If you opt for this method, you'll need to top up at least 10% of your Overdraft limit per month. Interest will accrue at a rate starting from 6% per year (similar to many credit card providers). Let's look at an example:
Your average balance during March has been -€3,000.
A 6% annual interest rate has been accruing daily for the 31 days of March.
To calculate the interest charged at the end of March, we use this formula: (6%/365)*31*3,000 = €15.28
You can see a breakdown of any interest fees by going to your Billing page and downloading your invoice(s).
There is an activation fee consisting of 2% of the Overdraft limit that you select. This amount will be deducted from your Pleo Wallet on the day of activation. This activation fee is charged annually, guaranteeing your Overdraft limit for the following 12 months, subject to our Terms and Conditions.
For customers who don't pay back the full balance by the end of each month, a fixed annual interest rate starting from 6% above benchmark will be charged every month. Fixed annual interest rate might differ for customers and can range from 6% to 18%.
Overdue Fees and Penalties:
Overdue fees and penalties will be charged in case your account falls into an "overdue" state. The details about these fees and penalties can be found in the Terms and Conditions (you can also find these linked in Pleo, after clicking on “Manage Overdraft”). Your Overdraft account can become Overdue if:
You have opted out of auto repayment but failed to top-up your Wallet by at least 10% of your Overdraft limit.
Your Wallet’s balance is insufficient for due interest and fees.
The outstanding Overdraft balance is not repaid at the end of 12 month period (from the day of activation).
How to get help
For any questions about pricing, activation, or similar, please reach out to your dedicated customer success manager.
If your organisation is having financial difficulties, we’d be happy to discuss repayment plans with you. Please get in touch at firstname.lastname@example.org.
For general technical support, here's how you can reach us.