Cash Credit (CC) is a short-term loan offered to businesses to meet their working capital requirements, whereas Overdraft facility is funding offered by banks to individuals or companies to withdraw money from the banks even if their account balance is low, zero or below. The bank sanctions a specific limit and your account can go in negative up to that limit. Overdraft account is given both for business and personal uses. In some cases, the bank may allow him to overdraw his account to cover. Difference Between Cash Credit (CC) and Overdraft (OD). Difference between Overdraft and Cash Credit this that; cash credit is a short- term loan to the account holder (company/individual).