Benefits of a Business Overdraft

A Business Overdraft can give you financial flexibility when you need it, could help you get your business off the ground, manage your cash flow and cover any unexpected costs.

Flexible borrowing

Apply for a limit from £500 to suit your business.

Simple pricing

Monthly usage or annual fees and only pay interest on the funds you use.

Avoid extra charges

Have funds available when you need them to avoid unauthorised borrowing charges.

Get a quote for a Business Overdraft up to £25,000

Get a quote for a Business Overdraft up to £25,000

See how likely you are to get a Business Overdraft without affecting your credit rating. View indicative interest rates and repayment details. 99% of customers who used this tool and opened the same product received an offer rate that was the same, better or no more than 10% above their indicative quote.

Get a quote now

Rates and fees

17.34% EAR representative* (varies with Bank of England Bank Rate) for unsecured overdrafts up to £25,000.

EAR stands for equivalent annual rate. It is the rate you would pay if you go overdrawn to the full limit of your authorised overdraft 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 considers the effect of compound interest (charging interest on your interest) on your debt.

Please be aware that charges apply. The interest rate and fees are set out in the table below. Charges for unauthorised borrowing are charged separately.

Limit Band

£500 - £5,000

£5,001 - £25,000

£25,001 +

Limit Band

Rate

£500 - £5,000

10.85% per year above Bank of England Bank Rate 

£5,001 - £25,000

10.85% per year above Bank of England Bank Rate

£25,001 +

Rates will be discussed on application

Limit Band

Fee

£500 - £5,000

£12 monthly usage fee

£5,001 - £25,000

1.99% annual fee (minimum fee £150)

£25,001 +

Annual fee – discussed on application

*EAR representative and contextual information 

The 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 up to £25 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.    

 Unauthorised rates and charges

  • If you overdraw on your account, or exceed an overdraft limit without prior agreement, you will be charged an Unauthorised Borrowing Interest (UBI) Rate which is 10.85% above the Bank of England Bank Rate.

  • We will stop a payment if you do not have the funds available in your account. You will be charged a fee of £7 for each payment we cannot make. We stopped charging these fees temporarily in September 2022, but resumed charging them on 10 April 2024.

Am I eligible?

Am I eligible?

You can apply for a Business Overdraft if you are:
 

  • An existing Business Current Account holder.
  • A sole trader, partner or company director with authority to borrow on behalf of your business.
  • Aged 18 or older.
  • Using it for business use only.

Keep in mind

Keep in mind

  • If the Bank of England Bank Rate moves, your interest rate will move immediately by the same amount without any prior notice to you. 
  • Usage fees or annual fees will apply depending on your overdraft limit. 
  • If you borrow more than your planned Business Overdraft limit, you may have to pay additional unauthorised borrowing charges. 
  • A Guarantee may be required for Limited Companies and Limited Liability Partnerships. 
  • You could be asked to repay your Business Overdraft at any time.

Bank of England Bank Rate calculator

Bank of England Bank Rate calculator

The price of your Business Overdraft will vary as the Bank of England Bank Rate changes. Find out more and see how rate changes could affect you.

Bank of England Base Rate

Borrow up to £5,000 for your new business

You could borrow up to £5,000 across a Business Overdraft or Business Credit Card after you open a new Business Current Account**. This could help you kickstart your business, build your credit rating and be ready for any unexpected costs.

Bank Accounts for start-ups and small businesses

 

**Apply online once your new Business Current Account is set up and you’ll get an instant decision. Eligibility for lending will be assessed as part of a separate application, and there is no guarantee of lending being granted. All lending is subject to status.

FAQs

Lending appeals

The right type of funding can play a vital role in helping your business reach its potential. If your lending application is declined, we will work with the British Bankers’ Association to pursue any raised appeals.

Talk to us

You can apply for a Business Overdraft by phone.

Existing customers call 0345 300 0268

 

If you’re a new customer, call us to talk to one of our business management team.

New customers call 0345 300 1319

We’re available from 9am to 5pm, Monday to Friday, except public holidays.

 

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

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.

All lending is subject to status. Security may be required.

Making sure you get a fair deal

We want you 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.