Pleo Overdraft

This article explains:

• What is Overdraft

• The benefits of Overdraft

• How to activate Overdraft

• Download Overdraft statement

• How to change (or deactivate) your Overdraft setup

• Download Overdraft statement

• Repayment options

• Fees

• How to get help

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 able 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 billing date (last calendar day of the month). 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. If your organisation doesn't qualify for Overdraft, the option to activate Overdraft will not be visible. 

Go to Wallet to see if you can Activate Overdraft or if you need to Apply for Overdraft

To activate Overdraft:

1. Go to "Wallet"

2. Click "Activate Overdraft".

3. Set your Overdraft limit (it can be less than or equal to the amount we've calculated).

4. Please take note of the activation fee that will be deducted from your Wallet.

5. Choose a repayment option

6. Click "Continue".

7. 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).

8. Confirm by clicking "Activate Overdraft".

To apply for Overdraft:

1. Go to "Wallet”
2. Click “Apply for Overdraft”
3. Choose your Overdraft limit
4. Add your Bank and Financial statements
5. Submit the application
6. You'll receive an email as soon as your application has been reviewed and if approved you can continue to activate Overdraft

Good to know: Overdraft agreements have a 12 month term. You can renew the agreement from 30 days before the expiration date (if you are eligible) by clicking Renew Overdraft. If you are not eligible for a renewal, make sure any outstanding overdraft amount is paid in full before the expiry date.

Download Overdraft statement

1. Navigate to "Wallet"
2. Click "Manage Overdraft"
3. Click "Statements" for an overview of your statements
4. Click on the download icon to download a statement

How to change (or deactivate) your Overdraft setup

To make changes to your Overdraft setup:

1. Navigate to Wallet
2. Click Manage Overdraft
3. Click Change Limit to higher or lower your Overdraft limit

To deactivate Overdraft reach out to your Customer Success Manager.

Repayment options

As mentioned in the above activation section, there are two ways of paying back an Overdraft amount:

• Automatic repayment means that the overall outstanding amount will be automatically debited from your bank account at the end of each month. If the repayment is successful, 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 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).

Fees

• Activation fee:

  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.

• Interest:

  For customers who don't pay back the full balance before the last calendar day of the 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:

1. You have opted out of auto repayment but failed to top-up your Wallet by at least 10% of your Overdraft limit.

   Or

2. Your Wallet’s balance is insufficient for due interest and fees.

   Or

3. The outstanding Overdraft balance is not repaid at the end of the 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 collections@pleo.io.

For general technical support, here's how you can reach us.