Business Overdraft

Get financial flexibility and support when it matters.

  • Use, repay and re-use as your goals evolve.
  • Instant decision – borrow up to £50,000.
  • Apply in the App or Online for Business.

 

Log in and apply

Check if your business can apply

Why choose us for a business overdraft?

 

Flexible borrowing online

You know your goals best. Borrow between £500 and £50,000 and kickstart your next stage.

 

Simple pricing

Only pay interest on the money you borrow and use your overdraft as a cost-effective way to help manage cash flow. This means you get peace of mind knowing exactly what you’re paying for.

 

Avoid extra charges

Having money available through your overdraft means you could use it to avoid unauthorised borrowing charges. Flexibility and stability, all in one.

Flexible borrowing online

You know your goals best. Borrow between £500 and £50,000 and kickstart your next stage.

Simple pricing

Only pay interest on the money you borrow and use your overdraft as a cost-effective way to help manage cash flow. This means you get peace of mind knowing exactly what you’re paying for.

Avoid extra charges

Having money available through your overdraft means you could use it to avoid unauthorised borrowing charges. Flexibility and stability, all in one.

Log in and apply
Log in and apply

Understand our rates and fees

It takes into account the interest rate you’re charged as a result and how often it’s charged

15.90% 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 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'll be charged an Unauthorised Borrowing Interest (UBI) Rate which is 10.85% above the Bank of England Bank Rate.

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

Check if your business can apply

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 changes, your interest rate will be immediately updated to match this. You won’t get any notice about this.
  • We'll charge you a monthly or annual fee depending on your overdraft limit.
  • If you borrow more than your planned Business Overdraft limit, you may have to pay charges for additional unauthorised borrowing.
  • A Guarantee may be needed for Limited Companies and Limited Liability Partnerships. 
  • You could be asked to repay your Business Overdraft at any time.
 

Borrow up to £5,000 with a new Business Account

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.

Open a new Business Account


**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.

 

Other borrowing options

Whether you're an established business or just starting out, finding the right finance product can be difficult.

Compare and choose our products, whatever your business needs.

View all borrowing

9 ways to improve cash flow

Keep cash moving so you can grow and thrive. Read our tips, including how to get the right funding you need.

Read the guide
 

Other borrowing options

Whether you're an established business or just starting out, finding the right finance product can be difficult.

Compare and choose our products, whatever your business needs.

View all borrowing

9 ways to improve cash flow

Keep cash moving so you can grow and thrive. Read our tips, including how to get the right funding you need.

Read the guide

Frequently asked questions

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

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.