If you need to borrow extra funds for a short while, having an arranged overdraft on your business account could work for you.
Find out how to apply for a Business Overdraft.
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.
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.
Arranged overdrafts up to £25,000
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%.
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.
Typically 12 months, reviewed annually
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 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.
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.
To apply for the Business Overdraft, you’ll need:
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:
To apply by email, please send your application to:
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.
If you would prefer to submit your application by post, then print it off and send your completed forms to:
The Co-operative Bank
P.O. Box 200
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.
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.
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.
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.
Benefit from flexible repayment terms to suit your business needs
Manage your everyday expenses with a flexible cash flow
Get support if you’re planning to grow your business or purchase your first commercial premises