Business Overdraft (£0-3m turnover)

View our rates and charges, and find out how to apply. 

Business Overdraft pricing

16.48% 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 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.

Please be aware that charges apply.

Limit Rate Fee
Unsecured overdrafts between £500 - £5,000  10.85% per year above the Bank of England Bank Rate £12 p/m usage fee
Unsecured overdrafts between £5,001 - £25,000 10.85% per year above the Bank of England Bank Rate 1.99% Annual Fee (min £120)
£25,001+ Rates will be discussed on application Annual fee – discussed on application
  • *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 £3 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.

  • To help small businesses with the impact of inflation and rising costs of business, we are temporarily waiving unauthorised borrowing fees and returned item fees.

    However, please note the below information regarding our usual approach to unauthorised rates and fees as your overdraft may revert to this approach at the end of the temporary fee waiver period.

    If you overdraw your account, or exceed an overdraft limit without prior agreement, you’ll be charged the Unauthorised Borrowing Interest (UBI) Rate of 10.85% above the Banking of England Bank rate on this unauthorised borrowing.

    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 (UBF) 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 £7 fee each time we have to return a payment.

  • Business Loans

    Whether you need cash to solve an unexpected problem or to make the most of an opportunity, we’re here to help with our Business Loans. 

    Find out more

    Credit Cards

    Our Business Credit Card provides a useful tool to pay for everyday expenses, and could improve your business’s cash flow.

    Find out more

    Invoice Finance

    Pay suppliers and settle expenses without needing to wait for invoices to be paid. 

    Find out more

    Asset Finance

    Replace or invest in new equipment or machinery, without tying up your funds

    Find out more

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

Get a Business Overdraft quote for 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

Apply Online

If you are asked to login, please follow these steps to apply for a Business Overdraft:

  1. Enter your login details, which will take you to the Online for Business Homepage
  2. Select ‘Overdraft’ in the left hand ‘Our products and services’ menu
  3. Select ‘Apply for an Overdraft’. 
Log on and apply

Talk to us

You can apply for a Business Overdraft by phone. 

0345 072 5555

Call us to talk to our business management team. We are available from 9am to 5pm, Monday to Friday, except public holidays.

Lending appeals

Appeals for borrowing. Business finance 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.

More about lending appeals



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.

Overdrafts are repayable on demand. 

Important Legal Information

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.

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.

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.