Overdraft

Overdrafts made clear and simple

If you need to borrow a little extra money for a short while, having an arranged overdraft on your business account could work for you.

For Overdraft requirements above £250,000, please refer to our Corporate Lending Products

Important Information

We recommend that you read the important document below and save a copy for future reference.

Credit facilities are subject to status.

  • Apply to borrow up to £250,000
  • Overdrafts may be offered on an unsecured or secured basis (there will be additional fees where security is required)
  • Arranged Overdraft Interest rates are variable and are calculated using the current Bank of England Base Rate plus the appropriate interest margin, which is agreed upon application. In some cases this will be determined by the financial status of your business.
  • For unsecured borrowing up to £25,000 the representative Effective Annual Rate of interest (EAR*) below will help you to compare our Overdraft rate with those of other lenders:

Representative example (for unsecured borrowing up to £25,000)

  Representative EAR*
Arranged Overdraft 6.70% (Variable)
Unarranged Overdraft 25.59%

Lending decisions are based on individual circumstances, so the rates we offer may vary between customers. When we advertise our products, we use representative rates to show what the majority of customers may be offered.

*EAR stands for Effective Annual Rate.  This is a representative interest rate showing the rate you would pay if you remained overdrawn for a year. 

The representative example provided does not include any future changes to the Bank of England Base Rate.

  • Interest is calculated daily and will be charged on a monthly basis.
  • Interest rates for Overdrafts above £25,000 are discussed upon application

Arrangement Fees

  • There will be a 1.5% arrangement fee (minimum fee of £50.00 – whichever is greater), for overdrafts up to the value of £25,000 (no fee for FSB account holders)
  • A 1.5% arrangement fee will apply for overdrafts above £25,000 (no fee for FSB account holders)
  • Where security is required details of fees will be discussed upon application

Charges that apply to all accounts

  • Unarranged overdraft utilisation fee - £20 per month

The unarranged overdraft utilisation fee is charged when your account goes overdrawn without an arranged overdraft limit, or exceeds an arranged overdraft limit. The fee will be charged each subsequent month, if you still have an unarranged overdraft on your account.

  • Unarranged overdraft event fee – £20.00 per event

    An unarranged overdraft event fee is charged every time your unarranged overdraft position increases (except where it does so as a result of charges or interest being applied). Only one event will be charged per day and there is no limit to the number of event fees that can be charged over the charging period.
  • Unpaid item fee - £30.00

An unpaid item fee is charged if we decline to pay an instruction where:
- to pay it would make you go overdrawn if you do not have an arranged overdraft limit
- or, where you do have an arranged overdraft limit, agreeing to the request would cause you to exceed your arranged overdraft limit.  This is known as a request for an unarranged overdraft.