See how much using a business overdraft could cost you
Things to remember
We charge an arrangement fee if you have an arranged overdraft. This’ll be taken when your overdraft is applied to your account and on renewal each year, if applicable.
If you have an arranged overdraft with us, and you use it, we’ll charge you an arranged overdraft interest rate for each day.
When you use your overdraft, you're going into debt.
Arranged overdrafts are meant for short-term borrowing. They can help if your business needs extra cash for a short time or in an unexpected cost comes along.
If we agree to give you an overdraft will depend on your circumstances. You must repay any overdraft when we ask you to in line with our General Terms and Conditions.
To help you understand the cost of an overdraft in pounds and pence, we've created a table with an example. It shows how much the cost of borrowing £1,000 through an arranged business overdraft costs for each of our products. If you borrow more than this or for a longer period, the cost will be equal to or higher.
These figures show the interest costs for an arrange overdraft. They don't include the annual fee for the agreed overdraft limit, so please keep this in mind.
Cost of borrowing £1,000 through an overdraft | For 7 days | For 30 days | For 60 days |
|---|---|---|---|
| 1|2|3 Business Current Account, Business Current Account (all tariffs) | £1.84 | £7.87 | £15.75 |
| Business Everyday Current Account | £4.32 | £18.51 | £37.11 |
| Business Current Account - Classic | £2.69 | £11.52 | £18.84 |
These illustrations assume you’re £1,000 into an arranged overdraft from the first day of the period of illustration. It assumes you don’t make any withdrawals or deposits. Your statement period starts on the first day of the period of illustration in a 30 day month.
If you have an arranged overdraft with us, we’ll charge you an arranged overdraft interest rate for each day you use it.
If you incur charges, we'll let you know on your monthly billing statement. These will include details of the transaction(s) that caused the fees and the date they'll be taken from your account.
We won’t charge you a fee if we refuse a payment due to a lack of funds. Interest may apply if the account is in an arranged overdraft or unarranged overdraft position.
An unarranged overdraft is when your account:
- goes over your arranged overdraft limit, or
- has a balance below zero without an arranged overdraft in place.
You’ll be charged an unarranged overdraft interest rate on the amount you’ve gone over your arranged limit, or on the amount you’ve gone overdrawn without an arranged overdraft in place. Arranged overdraft interest will also apply to the portion of your balance within your limit (if any).
Regular use of an unarranged overdraft could have an impact your credit file.
We charge an arrangement fee if you have an arranged overdraft. This’ll be taken when your overdraft is applied to your account and on renewal each year, if applicable.
Account type | Arrangement fee |
|---|---|
| 1|2|3 Business Current Account, Business Current Account (all tariffs) & Business Everyday Current Account | 1% (Min £50) |
| Business Current Account - Classic | 1.75% (Min £100) |
All overdrafts are subject to status. We can change your arranged overdraft limit at any time. We may require you to repay the amount you owe in full on demand at any time
Tips for using your overdraft
- Keep track of your spending through Online or Mobile banking
- Don’t go over your arranged overdraft limit
- Stay up-to-date with any changes to your business current account or overdraft, including interest rates and fees
- Remember that anything you spend from your overdraft will need to be paid back.
Depending on your circumstances, there may be alternative forms of borrowing, such as our Business Cashback Credit Card. If you want to find out more, please review our full list of borrowing options.