Business Overdraft

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.

Features and benefits

  • 11.09% EARCloseEAREAR 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. representative1 (Varies with Bank of England Bank Rate) for unsecured overdrafts up to £25,000
  • Make sure extra funds are there when you need them.
  • Only pay interest on the funds you use.
  • Apply for a limit that suits your business.
  • Read our Charter to find out how we're committed to lending to businesses.
  • 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.

Unsecured overdrafts up to £25,000
Unsecured overdrafts over £25,000 and all secured overdrafts
Representative Interest Rate1
11.09% EAR representative1 (Varies with Bank of England bank rate)
Rates will be discussed on application
Overdraft Term
Up to 12 months
Overdraft Amount
£500+
Fees

Please be aware that charges apply.

You will pay an arrangement fee of up to 1.5% on your overdraft, which is related to the amount you borrow. We will also discuss the terms with you before any overdraft is taken out. To cover our administration costs for smaller facilities, there will be a minimum scale charge of between £100 and £250 resulting in the overall charge being more than 1.5%. The same charges apply for limit increases and facility renewals.

Important Information
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 of up to £1 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.

We know it’s important to have an overdraft you can rely on, that is why when a limit has been agreed your Business Overdraft will provide instant access to funds.

Tell us about your business’s plans and needs. We will then agree on an interest rate and let you know if we require any security. We’ll discuss the terms with you before any overdraft is taken out.

To apply for our Business Overdraft, you should:

  • Require the overdraft for business use.
  • Be a sole trader, partner or director with authority to borrow on behalf of your business.
  • Be aged 18 or over.

For any borrowing which is unarranged, the Unauthorised Borrowing Interest (UBI) rate is 26.4%.

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 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 £35 fee each time we have to return a payment.

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How to apply

Internet Banking users

Where eligible, you can get an immediate decision and an overdraft up to £25k opened within minutes. Simply log on to Internet Banking and select ‘Overdrafts’ from the left hand menu.

Log on and apply nowfor a business overdraft.

On the phone

0345 072 5555Call telephone number 0345 072 5555

Call us to talk to one of our business management team.

Lines open 7am to 8pm Monday to Friday and 9am to 2pm on Saturday, except on UK bank holidays.

One of our business management team will be happy to speak with you about your application.

However, before you get in touch, please make sure you’ve prepared answers to the following:

  • How much would you like to borrow?
  • How will you use the loan?
  • What length of loan term do you expect?