Best Business

Compare Business Overdraft Rates

Cynergy Bank Business Banking
  • Overdraft Limit
    £10,000
  • Rep EAR
    STA
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Starling Bank Business Banking
  • Overdraft Limit
    £25,000
  • Rep EAR
    11.50%
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HSBC Business Banking
  • Overdraft Limit
    £30,000
  • Rep EAR
    16.25%
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The Co-operative Bank Business Banking
  • Overdraft Limit
    £25,000
  • Rep EAR
    11.85%
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Virgin Money Business Banking
  • Overdraft Limit
    £1,000
  • Rep EAR
    14.70%
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15 Best Business Accounts with Overdrafts in 2024

Editorial Team
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Overdrafts are a borrowing facility that tend to be unsecured and used to bridge something unexpected. They're offered within business bank accounts and give access to credit even if your balance would otherwise be zero.

Find the best business overdraft rates & fees from the UK's top overdraft providers and choose the most suitable for your business.

Starling Business Overdraft

  • Available with the Starling Business Current Account
  • Offering limited companies & LLPs arranged overdrafts from £1,000 to £50,000
  • With a representative interest rate of 11.50% EAR & an annual fee of 1.75% the overdraft value
  • A personal guarantee is needed as security
  • Your business must have been trading for a minimum of 24 months to be eligible
  • Costs nothing to open & hold their bank account
  • 24/7 account management with their app
  • Rated 4.4 stars on Trustpilot
  • Fully licensed & regulated UK bank with FSCS protection
  • Awarded Best Business Banking Provider 2023 in The British Bank Awards
Starling Bank Business BankingWebsiteRead our in-depth Starling Bank review

Zempler Bank Business Overdraft

  • Available by invitation only, with either Zempler Business Bank Accounts
  • Borrow up to £2,000 with an arranged overdraft
  • Short term solution available for 30 days at a time
  • Charging a representative 69.9% APR (variable), first £5 is interest-free
  • Offers a free & a £9 per month, paid account
  • Manage the account 24/7 online from any device
  • No credit checks are conducted during the application process but overdrafts may be subject to a credit check, for eligibility
  • Trustpilot rating of 3.8 stars out of 5
  • Fully regulated online bank with FSCS protection
Zempler Bank Business BankingWebsiteRead our in-depth Zempler Bank review

Virgin Money Business Overdraft

  • Available with Virgin Money Business Current Accounts
  • Automatic planned borrowing amount limit of £1,000 for 12 months maximum on Virgin M Account for Business
  • With a representative interest rate of 14.70% EAR
  • Access to more & on other current accounts is available, subject to eligibility & status
  • Monthly account fees start from £0
  • With 25 months free banking offered to all switchers
  • Switch your account in seven days
  • 24/7 mobile banking with their award-winning app
  • Earn 0.35% cashback on all eligible debit card transactions
  • Friendly UK-based customer support team
Virgin Money Business BankingWebsiteRead our in-depth Virgin Money review

NatWest Business Overdraft

  • Available with NatWest Business Bank Accounts
  • Business overdrafts from £500 to £25,000 available for 12 months
  • Charging interest of 15.03% to 14.92% EAR representative, with arrangement fees from £50
  • Rates discussed for businesses looking to borrow more or for longer
  • Limits can be increased, decreased or removed via an online application form
  • No account management fees, just pay for usage
  • 24/7 mobile banking with their award-winning app
  • Debit cards and credit cards are available
  • Guaranteed 7-day current account switch
NatWest Business BankingWebsiteRead our in-depth NatWest review

Metro Bank Business Overdraft

  • Available with the Metro Business Bank Account
  • Borrow up to £25,000 with a representative interest rate of 15.86% EAR
  • Arrangement fees are charged at 1.75% the amount, or £50, whichever is highest
  • For businesses that require more there is a tailored rate & fees
  • The overdraft is reviewed annually
  • Account management costs £6 each month
  • Monthly fee is waived for balances of more than £6k, with 30 free transactions for the month too
  • 24/7 online & mobile banking
  • Top rated for customer service
  • Part of the Current Account Switch Service
Metro Bank Business BankingWebsiteRead our in-depth Metro Bank review

Lloyds Bank Business Overdraft

  • Available with Lloyds Business Bank Accounts
  • Unsecured overdrafts of up to £25,000, if you turnover less than £3 million
  • Pay variable 10.85% above the BoE rate, with usage fees starting from £12 per month
  • Access more than £25,000 if your turnover is between £3 million & £25 million
  • Rates & fees discussed upon application
  • Current account fee from £7 per month
  • Choose from their electronic payments or mixed-transaction tariffs
  • Manage your account 24/7 online
  • Experienced UK-based support team
  • Switch your account in seven days
Lloyds Bank Business BankingWebsiteRead our in-depth Lloyds Bank review

Barclays Business Overdraft

  • Available with Barclays Business Current Accounts
  • Overdrafts from £1,000 to £25,000 (up to £50k available on request)
  • With interest rates ranging from 18.07% to 14.99% EAR, representative
  • Calculated daily & applied in arrears each month
  • Overdraft fees apply, ranging from £95 to £295 fixed or 1.6% to 2.5% of the limit
  • Current account management fees from £8 per month
  • Electronic & mixed-payment price plans are available
  • 24/7 online & mobile banking
  • Friendly UK customer support available Monday to Friday
  • Benefits from the 7-day current account switch guarantee
Barclays Business BankingWebsiteRead our in-depth Barclays review

Santander Business Overdraft

  • Available with the Santander Business Current Accounts
  • Access an arranged overdraft from £500 to £25,000
  • With representative interest charged at 10% EAR variable
  • And annual fees of 1% the agreed amount (£50 min.)
  • Monthly account fee from £7.50
  • Switchers bank for a discounted price for 12 months
  • Switch your account in seven days
  • 24/7 online & mobile banking
  • Moneyfacts Best Business Current Account Provider & Business Bank of the Year winner 2021
Santander Business BankingWebsiteRead our in-depth Santander review

HSBC Business Overdraft

  • Available with HSBC Business Banking Accounts
  • Borrow up to £30,000 with same day approval
  • Subject to a representative interest rate of 16.25% EAR
  • With arrangement fees of 1.75% the overdraft total (£25 min.)
  • £30k+ overdraft limits available on request
  • Monthly account management fee from £6.50
  • HSBC choose the right price plan for you
  • Access with online & mobile banking
  • Experienced UK-based support team
  • Part of the Current Account Switch Service
HSBC Business BankingWebsiteRead our in-depth HSBC review

TSB Business Overdraft

  • Available with the TSB Business Plus Account
  • Overdraft amounts of £5,000 to £15,000 available (access more upon request)
  • With a fixed, one-time arrangement fee of £175
  • Charging an interest rate of 14.44% representative EAR monthly
  • Fees starting from £100 to 1.5% limit (£250 min.)
  • Current account management fee costs £5 per month
  • Switching businesses receive 25 months free banking
  • Switch your account in seven days with the switch guarantee
  • Manage the account 24/7 online
  • Experienced UK-based support team
TSB Business BankingWebsiteRead our in-depth TSB review

The Co-operative Bank Business Overdraft

  • Available with The Co-operative Business Current Accounts
  • Get access to a business overdraft of up to £25,000
  • Charged at representative 11.85% EAR variable interest rate
  • Interest rates for overdrafts between £25,000 & £250,000 need to be negotiated
  • There is a 1.5% arrangement fee (£50 min.), waived for FSB account holders
  • Current account management fee from £7 per month
  • 30 months free banking available to switching businesses
  • 24/7 mobile & online banking
  • Community & customer focused bank with ethical values
  • Awarded Best Charity Banking Provider 2021
The Co-operative Bank Business BankingWebsiteRead our in-depth The Co-operative Bank review

Bank of Scotland Business Overdraft

  • Available with the Bank of Scotland Business Bank Accounts
  • Unsecured overdrafts of up to £25,000, if you turnover less than £3 million
  • Pay 10.85% per year above the BoE rate in interest, with usage fees starting from £12 per month
  • Access more than £25,000 if your turnover is between £3 million & £25 million
  • Rates & fees discussed upon application
  • Monthly account management fee from £7
  • Choose from their electronic payments or mixed-transaction tariffs
  • 24/7 online & mobile banking
  • Experienced UK-based support team
  • Switch your current account in seven days
Bank of Scotland Business BankingWebsiteRead our in-depth Bank of Scotland review

Royal Bank of Scotland Business Overdraft

  • Available with Royal Bank of Scotland Business Bank Accounts
  • Business overdrafts from £500 to £25,000 available for 12 months
  • Charging interest of 15.03% to 14.92% EAR representative, & fees from £50 to £375
  • Rates discussed for businesses looking to borrow more or for longer
  • Limits can be increased, decreased or removed via an online application form
  • No monthly account fees, only pay for usage
  • 24/7 online & mobile banking
  • Debit, credit & charge cards available
  • Part of the Current Account Switch Service
Royal Bank of Scotland Business BankingWebsiteRead our in-depth Royal Bank of Scotland review

Ulster Bank Business Overdraft

  • Available with Ulster Business Bank Accounts
  • Business overdrafts from £500 to £25,000 available for 12 months
  • Charging a representative 12.82% EAR with arrangement fees from £150
  • Rates discussed for businesses looking to borrow more or for longer
  • Account management fee of £8, paid quarterly
  • Anytime Banking with mobile, telephone & online banking
  • 24/7 UK support with Bankline
  • Debit cards and credit cards are available
  • Switch your account in seven days
Ulster Bank Business BankingWebsiteRead our in-depth Ulster Bank review

Allied Irish Bank (GB) Business Overdraft

  • Available with the AIB (GB) Business Current Account
  • Business overdrafts up to £25,000 available
  • Where the representative interest rate is 13.92% EAR variable
  • And arrangement fees are charged at 1% the amount
  • Renewing or increasing the overdraft limit costs a 0.5% fee
  • Current account costs £10 each quarter
  • 24/7 access with their internet banking service & mobile app
  • Business debit cards available, purchases are charged a 55p fee
  • Deposits are covered by the FSCS
  • Benefits from the Current Account Switch Scheme
Allied Irish Bank (GB) Business BankingWebsiteRead our in-depth Allied Irish Bank (GB) review

What is the best business overdraft?

  • Best business overdraft overall: Starling Business Overdraft · Rep 11.50% EAR
  • Best for largest amount: Barclays Business Overdraft · Rep 16.25% EAR
  • Best for lowest EAR: Santander Business Overdraft · Rep 10.00% EAR
  • Best for lowest fees: Allied Irish Bank Business Overdraft · Rep 13.92% EAR
  • Best for short term: Zempler Business Overdraft · Rep 69.90% EAR

What is a business overdraft?

A business overdraft is a financial arrangement provided by a bank that allows a business to withdraw or spend more money than is available in its business bank account, effectively creating a negative balance.

It is a form of short-term borrowing that can help businesses manage their cashflow, cover unexpected expenses, or seize opportunities when funds are temporarily insufficient.

How much credit can you access with a business overdraft?

Most business overdrafts offer limits up to £25,000. Though, businesses can apply for more subject to further checks, assets for collateral or businesses to be in-line with their eligibility criteria.

In this guide, we include business overdraft providers that offer limits from £500 up to £150,000.

What is the representative interest rate?

The representative rate is the lowest interest rate that the majority (51%) of customers successfully receive. This gives an idea of the monthly or annual fees you'll need to pay to borrow.

This rate varies by provider but usually falls within the range of 15% to 10% EAR.

How much do business overdrafts cost?

This all depends on how much you borrow and how long for, but as standard you're likely to be charged for:

  • Arranging the overdraft - these tend to be fixed fees, from £25, or a percentage of the agreed limit, 1.5% for example.
  • Interest - this is standard and will likely be the biggest cost, interest rates can vary from 15% to 10% of the borrowed amount.
  • Changing limits - if you want to make changes to how much you can access then you could be charged a one-time fee to do so.
  • Renewing - once the agreed borrowing period is up small charge is incurred should you renew (this tends to be cheaper than the arrangement fee).
  • Account management - since a current account is required to access an overdraft you may want to consider their costs too, which can be anywhere between £0 to £8.50 per month (in this list).

Frequently asked questions

It's not uncommon to have questions when looking in to business banking, especially for the first time. These are some of the most relevant questions for business bank accounts:

Yes, overdrafts are only available as part of a business current account.

While overdrafts are available to most businesses, they are not a requirement.

An arranged overdraft is is agreed with your banking provider, while an unarranged overdraft is not and tend to have more and higher fees.