Benefits of a Business Overdraft

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.

Rates and charges

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

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

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

  • 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 Bank Rate
 

Borrow up to £5,000 for your new business

You could apply for up to £5,000 across a Business Overdraft or Business Credit Card when you open a new Business Current Account**. This could help you get your business off the ground, build your credit rating and cover 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. 

Frequently asked questions

Other borrowing options

Other borrowing options

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Effective cash flow management is essential to ensure your business thrives. Read our tips, including getting the right funding in place.

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Lending appeals

Appeals, has your Business Finance been declined? You can ask for the decision to be reviewed

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.

Find out more about lending appeals

Talk to us

If your business has a turnover between £0-3m call 0345 072 5555

For businesses with a turnover between £3m-£25m call 0800 022 4395

We’re available from 8am to 6pm, Monday to Friday, except public holidays.

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.

Important Legal Information

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.

The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.

Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

We adhere to The Standards of Lending Practice which are monitored and enforced by the LSB: www.lendingstandardsboard.org.uk.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.