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.
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 individuals
- 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
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 11.30% 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.
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 individuals (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
Step 1. Gather the information you’ll need to apply
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 are new to The Co-operative Bank, you need to apply for a business current account before you can apply for an overdraft)
- 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 Individual, Additional Named Individual and Major Shareholder
Step 2. Read and save the important documents
Read the following important documents and save copies for your future reference:
Step 3. Complete the forms and send them to us
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
PO Box 4931
Swindon
SN4 4PL
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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