An overdraft is a simple business financing solution, linked to your business current account, that gives you peace of mind that any short term cash flow requirements will be covered.
- An overdraft facility is arranged with us in advance and is then available for you to use when you need it
- An overdraft gives your business financial flexibility by assisting with working capital, managing seasonal fluctuations or covering short term cash flow requirements
- Interest is calculated on a daily basis so you only pay debit interest on the balance that is overdrawn
We have two different reference rates available for overdrafts – Bank of England Bank Rate and the 3 month LIBOR (formerly known as BBA LIBOR).
We will add a variable margin to the reference interest rate.
Overdraft facilities are usually subject to an overdraft set up fee. We will review the facility, usually every 12 months, and charge an annual fee.
Overdraft set up fees and Renewal fees are negotiable. Details of the amount, rate of interest and fees charged will be confirmed when your application is agreed.
Whether we provide credit depends on your circumstances, and you must be 18 or over. Lending terms and conditions apply.
Arranged overdrafts are repayable on demand. This means you will have to repay the overdraft in full when asked to do so. You may need to provide security for overdrafts.
If you do not arrange an overdraft with us in advance then the unarranged overdraft rate and fees & service charges for unarranged borrowing will apply.
View our Terms and Conditions (PDF).
View our Fees and service charges explained – business accounts leaflet (PDF).
View our Interest Rates (PDF).