Business Overdraft

When you need to be ready for the unexpected.

Even the most well managed businesses may have to deal with unforeseen events and unexpected expenses. And that may mean finding extra short-term funds at short notice. A business overdraft can help ensure that you have funds in place and available immediately should the unexpected happen.

Key Features

  • Get a quote online in minutes (your credit rating will not be affected).
  • Make sure extra funds are there when you need them
  • Apply for a limit that suits your business
  • Only pay interest on the funds you use
  • In the event of movement in the Bank of England bank rate your interest rate will move immediately by the same amount without any prior notice to you.
  • Tailored interest rates based on your business status - linked to Bank of England Bank Rate, which may vary from time to time
  • 8.35% EAR representative 1 (Varies with Bank of England Bank Rate) applies only to unsecured overdrafts up to £25,000

You can apply by calling 0345 300 0268.

Rates and charges

Interest Rate

8.35% EAR representative1 (Varies with Bank of England Bank Rate)

1Rate is representative and applies to unsecured overdrafts up to £25,000. For all other overdrafts, rates will be discussed on application.

Interest Rate

Overdraft Term

8.35% EAR representative1 (Varies with Bank of England Bank Rate)1Rate is representative and applies to unsecured overdrafts up to £25,000. For all other overdrafts, rates will be discussed on application.

Up to 12 months

Interest Rate

Overdraft Amount

8.35% EAR representative1 (Varies with Bank of England Bank Rate)1Rate is representative and applies to unsecured overdrafts up to £25,000. For all other overdrafts, rates will be discussed on application.

£500+

Interest Rate

Fees

8.35% EAR representative1 (Varies with Bank of England Bank Rate)1Rate is representative and applies to unsecured overdrafts up to £25,000. For all other overdrafts, rates will be discussed on application.

Please be aware that charges apply.

You will pay an arrangement of up to 1.5% on the amount of your overdraft, subject to a minimum fee of £250**. Subsequent renewals will include an arrangement fee of 1%, subject to a minimum fee of £200**. We will discuss full terms with you before any overdraft is taken out.

**The minimum fee is applicable in order to cover the administration cost of arranging smaller overdrafts.

Interest Rate

Important Information

8.35% EAR representative1 (Varies with Bank of England Bank Rate)1Rate is representative and applies to unsecured overdrafts up to £25,000. For all other overdrafts, rates will be discussed on application.

EAR stands for equivalent annual rate. It is the rate you would pay if you go overdrawn to the full limit of your facility for the entire year. It takes into account the interest rate you are charged as a result and how often it’s charged – in this case interest is calculated daily and charged monthly. It then takes into account the effect of compounding – charging interest on interest – on your debt. Charges for unarranged overdrafts are charged separately.

1The representative EAR is an illustration of the rate that the majority of customers will receive. If an overdraft is described as having a particular representative EAR, then we expect to offer that rate or better to at least 51% of the applicants we accept. Other customers may get a different rate based on their individual circumstances.

Our representative EAR applies to all unsecured overdrafts with a borrowing amount of up to £25,000 for businesses with a turnover from £1million up to £25 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.

Finance selector

A useful tool to help you find out which of our finance options may be right for your business.

Launch selectorfor finance products.
  • A Bank of Scotland business overdraft can help you ensure that extra funds are ready and waiting should you need them.

    • Available to Bank of Scotland business account customers on approval.
    • Apply for an amount to suit you.
    • Interest is only charged on the funds you use.

    Talk to us about your plans and needs and we’ll let you know what overdraft we could make available. We’ll agree interest rates with you and let you know if we need security on your borrowing. We’ll also discuss all terms and conditions with you before you take out your business overdraft.

  • For any borrowing which is unarranged, the Unauthorised Borrowing Interest (UBI) rate is 23%.

    The first time you go overdrawn, without an agreed overdraft facility, or exceed your agreed limit with us by £50 or more, you may be charged an Unauthorised Borrowing Fee (UBF) of £15. After that, the UBF is applied every time you increase your unauthorised borrowing by £50 or more from the previous day’s closing balance, unless a higher limit is agreed with us or until the account is within its existing limit or in credit.

    Where you do not have enough money available to make a payment and we do not agree to extend an unauthorised overdraft, you will not be able to make that payment. We charge a £25 fee each time we have to return a payment.

  • By phone

    You can apply by calling 0345 300 0268

    When you apply

    You’ll need to confirm that:

    • you are a sole trader, or a partner or director of the business
    • you are over the age of 18
    • the finance you wish to secure is for business use only.

    Please view our finance application checklist.

Can I borrow for my business?

See how likely you are to get a Business Loan or Overdraft. View indicative interest rates and repayment details. Try different options without affecting your credit rating.

Get a quote

ANY PROPERTY GIVEN AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.

All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

Case studies

Read about how we've helped other businesses just like yours.

Making sure you get a fair deal

We want to find a product that’s right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.

To find out more you can read the statement of responsibilities, which details what’s expected of us, the lender, and you, the borrower.