Business Overdraft

Cover your short-term costs

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

Competitive interest rate

discussed upon application

£250,000

standard borrowing limit (higher limits can be discussed on application)

1.5%

arrangement fee (or min. fee of £50.00 – whichever is greater)

Bank of England Base Rate

5.25%, plus our agreed interest margin

Why apply for a Business Overdraft?

  • Short-term business borrowing to help you manage your cashflow more flexibly and efficiently
  • Ideal for unexpected bills or emergencies
  • Only pay for what you use – you’ll only be charged interest based on your usage
  • Apply for up to £250,000 to cover short-term business costs (higher limits can be discussed on application)

Find out how to apply for a Business Overdraft.

Check eligibility for you and key parties

  • 18 or over
  • A UK resident with a business or charity address in the UK
  • Authorised to borrow on behalf of the business or charity
  • A Co-operative Bank business current account holder

If you do not yet have a Co-operative Bank business current account, we will help you open one if your lending application is successful.

The Business Overdraft is available for business use only.

Key information

An overdraft is a formal arrangement with a pre-agreed credit limit. The credit limit is the total amount we agree in advance that you can borrow at any time using your overdraft. We will decide how much we will allow you to borrow based on your credit rating and other information you provide us when you apply.

It is important to develop a cashflow forecast for your business when considering an overdraft to understand what limit you will need.

Interest, fees and terms

Arranged overdrafts up to £25,000

Representative 11.85% EAR (variable), based on an assumed amount of £25,000 over 12 months

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.

Because lending decisions for arranged overdrafts are based on individual circumstances, the rates we offer may vary between customers. This representative rate shows what the majority of our customers are offered.


Overdraft arrangement fees

1.5% of overdraft amount requested or minimum fee of £50, whichever is greater (not applicable for FSB account holders)

An arrangement fee will apply and is related to the amount you choose to borrow. These terms will be discussed with you before you take the overdraft. To cover costs for smaller facilities there will be a minimum scale charge of £50 resulting in the overall charge being more than 1.5%.


Security fees

Discussed upon application

Overdrafts may be offered on a secured or unsecured basis. An overdraft may be secured if you request a credit limit of over £10,000. Please note that there may be additional fees when security is required.

Security fees are the costs you’ll need to cover so that the Bank can secure the overdraft. For example, the cost of registering a Legal Charge over a business property.


Term length

Typically 12 months, reviewed annually


Unarranged borrowing

25.59% EAR (variable), based on an assumed amount of £25,000 over 12 months

If we allow unarranged borrowing on your account, you’ll incur fees such as an unarranged overdraft utilisation overdraft, you’ll be charged an unpaid item fee.

For full information on fees for unarranged borrowing, please refer to your business current account tariff.


EAR

EAR stands for Effective Annual Rate of Interest and shows the rate payable if you remained overdrawn for a year. It doesn’t include any other fees or charges that you may pay when using or arranging your overdraft or take into account any future changes to the Bank of England Base Rate.


Variable

Variable means that the rate could go up or down. Your Overdraft Terms and the Overdraft Pre-Contract Information explain how we may make changes to your rate.

Interest is calculated daily and is charged on a monthly basis.


How to apply

Please note: All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on your business and key account parties (including directors and shareholders).

Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your loan or other debts secured on the property.

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

For overdraft applications over £250,000

If you would like to apply for an overdraft over £250,000 up to a maximum of £10m, please get in touch with one of our Relationship Managers. They will discuss your lending requirements with you and tell you what information you’ll need to send us.

For overdraft applications under £250,000

To apply for the Business Overdraft, you’ll need:

  • your Co-operative Bank business current account details, including account title, sort code, account number, bank name and bank address (if you do not yet have a Co-operative Bank business current account, we will help you open one if your lending application is successful)
  • your business details, including company number (sometimes referred to as a Company Registration Number), forecast turnover and annual turnover
  • personal details of all individuals registered on your existing Co-operative Bank business current account (including directors, members, designated members, trustees, committee members and partners)
  • individual cardholders’ details
  • details of assets, liabilities, income and expenditure for each Key Account Party, Additional Named Individual and Major Shareholder

Read the following important documents and save copies for your future reference:

Download Standards of Lending Practice PDF

Download How we use your personal information PDF

Use the information gathered in Step 1 to complete the following forms and send them to us at the relevant email address or the postal address given below:

Download Overdraft request form (including pre-contractual information) PDF

Download assets and liabilities PDF

Apply by email

To apply by email, please send your application to:

SMELendingRequests@co-operativebank.co.uk

This email address is for receiving lending requests only. We will not be able to respond to any emails received that do not contain a lending request.

Apply by post

If you would prefer to submit your application by post, then print it off and send your completed forms to:

Lending Services

The Co-operative Bank

P.O. Box 200

Skelmersdale

WN8 6YL

Application timeline

for applications under £25,000

  • 20 to 60 minutes

    Send us your completed forms

    This usually takes about 20 to 60 minutes. You may find it helpful to gather the information listed under ‘What you’ll need to apply’ before you start filling out the form.

  • Within 2 business days

    We’ll get in touch with you

    We aim to get in touch with you within 2 business days of you sending us your completed forms. We might ask you for some additional information at this stage.

  • Within 10 business days

    You’ll receive a decision from us

    We aim to give you a decision within 10 business days of your full application being received. Occasionally, we may require additional information depending on your circumstances.

Application timeline

for applications over £25,000

We will contact you within 2 business days of receiving your postal application or initial email to talk through your application with you and discuss next steps.

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