Overdraft

Important updates

Bank of England Base Rate Change

On 19th March 2020 the Bank of England Base Rate decreased from 0.25% to 0.10%.

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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 Commercial Lending Products

Product features

Apply to borrow up to £250,000
Overdrafts may be offered on an unsecured or secured basis. Please note that there will be additional fees where security is required.
Arranged overdraft interest rates are variable and are calculated using the Bank of England Base Rate plus the appropriate interest margin

- In some cases this will be determined by the financial status of your business

For 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 borrowing up to £25,000)

Arranged overdraft

Unarranged overdraft

Representative EAR*

6.97% (Variable)

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

*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.

Arrangement fees

There will be a 1.5% overdraft arrangement fee (minimum fee of £50.00 - whichever is greater). There is 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

To pay it would make you go overdrawn if you do not have an arranged overdraft limit.
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.

To apply, you and the key parties must meet the following criteria

Be 18 years or over
Be a UK resident
Be a sole trader, partner or director with authority to borrow on behalf of the business
Hold a business current account with The Co-operative Bank
Require the lending for business use

Your application is subject to status and based on an assessment of your financial circumstances.

We aim to give you a decision within 5 working days of the information being received. Occasionally, we may require additional information depending upon your circumstances.