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Business Overdraft

With our Business Overdrafts, you can make sure that extra funds are available for when you need them. Apply for an amount that suits you, and only pay interest on the funds you use.

Features and benefits

  • Get a quote online in minutes (your credit rating will not be affected).
  • 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.
  • The interest rate you will pay on your overdraft is linked to the Bank of England Bank rate, which may change from time to time.
  • Tailored interest rates based on your business status. (Rates are linked to Bank of England Bank rate, which may vary from time to time.)
  • 8.08% 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) applies only to unsecured overdrafts up to £25,000

Rates and charges


Unsecured overdrafts up to £25,000

Unsecured overdrafts over £25,000 and all secured overdrafts

Representative Interest Rate1
8.08% 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 of up to 1.5% on the amount of your overdraft, subject to a minimum fee of £250*. Subsequent renewals will include an arrangement fee of 1%, subject to a minimum fee of £200*. We will discuss full terms with you before any overdraft is taken out.

*The minimum fee is applicable in order to cover the administration cost of arranging smaller overdrafts.

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 from £3 million of up to £25 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. If your request is reasonable, we’ll grant it. We also promise not to change the availability of your extra funds as long as you keep within the agreed terms and limits.

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 £25 fee each time we have to return a payment.

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How to apply

On the phone

Call us on 0800 022 4378 to talk to one of our relationship managers. We are available from 9am to 5pm Monday to Friday.

Can I borrow for my business?

See how likely you are to get a Business Loan or Overdraft. View indicative interest rates and repayment details. Try different options without affecting your credit rating.

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Enquire online

Completing our online enquiry form takes about 10 minutes. Once we receive it, we'll contact you to discuss your business needs in more detail.

Enquire onlineabout our Business overdraft

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