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.
|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
||Up to 12 months
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.
||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:
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.
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.
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: