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Top 17 Business Overdrafts

Every business needs some ‘wriggle room’ from time to time. An arranged business overdraft is often unsecured and can be a low interest way to access credit for your business. If you’re currently shopping around for the best business overdraft available, these are 17 of the best connected to business current accounts.

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Companies are ranked in no particular order.

BankBorrowing LimitFeeInterest Rate
Starling BankUp to £10,000No fees15% EAR
BarclaysUp to £50,000£95 - £295
OR
1.6 - 2.5%
Rep EAR 10.45%
NatWest£500 to £50,0001.5% (a minimum of £150)Find out when you apply
HSBCFind out on applicationFrom £25Representative EAR of 9.9% variable
LloydsUp to £25,000Either £10 per month OR a 1.75% annual fee
(min £120)
11.02% EAR representative
Metro BankUp to £25,0001.75% or £50, whichever is greater.10% EAR
Bank of ScotlandUp to £25,000Either £10 per month OR a 1.75% annual fee
(min £120)
11.02% EAR representative
Yorkshire BankUp to £25,0002.5% establishment fee (£120 minimum)9.7% representative EAR.
TSBApply for detailsApply for detailsApply for details
Santander£500 to £25,000Annual fee of 1% of the agreed overdraft (£50 minimum)Representative 5.75% EAR​​​​​
Royal Bank of Scotland£1,500 plus£50 to £100 arrangement feeApply for details
Ulster BankUp to £25,0001% arrangement fee. £150 minimum.7.98% representative EAR.
Co-operative BankUp to £250,0001.5% arrangement fee (£50 minimum)6.97% Variable (for overdrafts up to £25,000)
Clydesdale BankApply for details2.5% establishment fee (£120 minimum)
9.7% representative EAR
Allied Irish BankUp to £25,0001.5% arrangement fee (minimum £500). Renewing or increasing charged at 0.5% minimum.5.9% EAR (variable) representative

1. Starling Bank

Starling Bank business bank account

  • Available with the Starling Bank business current account.
  • Up to £10k available.
  • No fees.
  • Manage your limit within the app.
  • Charges are capped.

Website: Starling Bank Business Overdraft
Read the full Starling Bank Business Bank Account review.

2. Barclays

Barclays business bank account

  • Available with Barclays business current accounts.
  • Unsecured overdraft available up to £50,000.
  • Arrangement fee applies.
  • Fees vary depending on your arranged limit.
  • Apply to increase or decrease whenever you need to.

Website: Barclays Business Overdrafts
Read the full Barclays Business Account review.

3. NatWest

Natwest business bank account

  • Available with NatWest business current accounts.
  • £500 to £50,000 unsecured facility available.
  • No set minimum repayments.
  • Arrangement fee applies.
  • Reviewed annually.

Website: NatWest Business Overdraft
Read the full NatWest Business Account review.

4. HSBC

HSBC business bank account

  • Available with HSBC business current accounts.
  • Limits and fees not available on the website, apply for more info.
  • Reviewed annually.
  • Arrange over the phone or in-branch.

Website: HSBC Business Overdraft
Read the full HSBC Business Account review.

5. Lloyds Bank

Lloyds Bank business bank account

  • Available with Lloyds Bank current accounts.
  • Arrange an overdraft up to £25k.
  • They approve 9 out of 10 businesses.
  • Free to set up if your limit is £5,000 or less.
  • Only pay interest on the funds you use.

Website: Lloyds Bank Business Overdraft
Read the full Lloyds Bank Business Account review.

6. Metro Bank

Metro Bank business bank account

  • Available with the Metro Bank current account.
  • Up to £25,000.
  • Fees are stated up front.
  • Arrange it in-branch.
  • Annual review applies.

Website: Metro Bank Business Overdraft
Read the full Metro Bank Business Account review.

7. Bank of Scotland

Bank of Scotland Business bank account

  • Available with Bank of Scotland business current accounts.
  • Up to £25,000 available.
  • Free to set up an overdraft of £5,000 or less.
  • Transparent fees.
  • Only pay interest on the funds you use.

Website: Bank of Scotland Business Overdraft
Read the full Bank of Scotland Business Account review.

8. Yorkshire Bank

Yorkshire Bank Business bank account

  • Available with Yorkshire Bank’s business current accounts.
  • Up to £25,000 available.
  • Security may be required.
  • Short term facility for 12 months.
  • Straightforward fees.

Website: Yorkshire Bank Business Overdraft
Read the full Yorkshire Bank Business Account review.

9. TSB

TSB Business bank account

  • Available with TSB’s business current accounts.
  • Limits and fees not advertised.
  • Only pay interest on the funds you use
  • Can apply for an amount that suits your business and its needs.

Website: TSB Business Overdraft
Read the full TSB Business Account review.

10. Santander

Santander Business bank account

  • Available with Santander’s business current accounts.
  • Arrange an overdraft of £500 to £25,000.
  • Only pay interest on the amount you borrow.
  • Annual fee applies.

Website: Santander Business Overdraft
Read the full Santander Business Account review.

11. Royal Bank of Scotland

Royal Bank of Scotland - RBS - Business bank account

  • Available with the Royal Bank of Scotland’s business current account.
  • Facility of up to £50k available.
  • Reviewed every 12 months.
  • Arrangement fee applies.

Website: Royal Bank of Scotland Business Overdraft
Read the full Royal Bank of Scotland Business Account review.

12. Ulster Bank

Ulster Bank Business bank account

  • Available with the Ulster Bank business current account.
  • Businesses must be registered in Northern Ireland.
  • Arrangement fee applies.
  • Short term solution for 12 months.
  • Security could be required.

Website: Ulster Bank Business Overdraft
Read the full Ulster Bank Business Account review.

13. Co-operative Bank

Co-op Bank Business bank account

  • Available with the Co-op’s business current accounts.
  • Up to £250,000 available.
  • Apply easily for up to £25,000.
  • Can be secured or unsecured.
  • Arrangement fee applies.

Website: Co-operative Bank Business Overdraft
Read the full Co-operative Bank Business Account review.

14. Clydesdale Bank

Clydesdale Bank business bank account

  • Available with Clydesdale Bank’s business current account.
  • Up to £25,000 available.
  • Arrangement fee applies.
  • Short term facility for up to 12 months.

Website: Clydesdale Bank Business Overdraft
Read the full Clydesdale Bank Business Account review.

15. Allied Irish Bank

Allied Irish Bank business bank account

  • Available with Allied Irish Bank business current accounts.
  • Up to £25,000 available.
  • An arrangement fee applies.
  • Credit limit will be agreed based on your business’ needs.

Website: Allied Irish Bank Business Overdraft
Read the full Allied Irish Bank Business Account review.

16. Unity Trust Bank

  • Arranged overdrafts available with the business current account.
  • Find out if you’re eligible online.
  • Limits and fees on application.

Website: Unity Trust Bank Business Overdraft
Read the full Unity Trust Bank Account review.

17. Danske Bank UK

  • Arranged overdrafts available with the business current account.
  • Two rates available – Bank of England Bank Rate and the 3 month LIBOR.
  • 14.59 – 16.59% arranged overdraft interest rate.
  • Set up fee applies.
  • Limit is reviewed every 12 months.
  • Security may be required.

Website: Danske Bank UK Business Overdraft
Read the full Danske Bank UK Account review.

How much can I borrow using a business overdraft?

Overdraft limits vary, but commonly range from £500 to up to £25,000. Some businesses can apply for larger amounts and will be assessed based on their circumstances and needs.

How much do business overdrafts cost?

Just like any other type of credit, there’ll be interest to pay on the amount you use. Most business overdrafts also have an arrangement fee, which will be paid when you set up the overdraft facility. There will often be a charge for reviewing the overdraft each year.

What details will I need to provide to get a business overdraft?

Your bank will conduct a credit search on your business. They’ll also the information they already have with your current account, including incoming cash, outgoings, and other financial data. To apply, you might need to provide some extra information about the business and its director/s, but it’s usually a fairly fast process.

Can I get a business overdraft if I already have a business loan?

Sometimes, yes. Your bank may suggest a loan instead of an overdraft if it will suit your needs better. If you already have a loan with your bank, they will review this before they accept your overdraft application.

Are business overdrafts the best way to borrow money?

Depending on the terms and the interest rates, business overdrafts can be a good way to borrow money. but not universally. Before you commit, it’s important to assess what you need the credit facility for, what it will cost, and if you can get a better deal elsewhere.

* Please note we have an affiliate relationship with Capital On Tap, which means we get paid if you open an account with them. This comes at no cost to you.

Disclaimer: Businessfinancing.co.uk is a business finance and lending research and information website publisher. We are not a lender, bank, broker and/or other financial institution and as such we are not authorised or regulated by the FCA to offer financial advice. We can't recommend any of the products and/or services featured on the site. Companies are ranked in no particular order and higher ranking does not imply one company is better than another. We work with FCA authorised and regulated firms who may pay us a commission for referring you to them but this has no impact on our content and helps keep this website free to use.



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