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| Rates & Charges | |
|---|---|
| Cashback | 0.25% cashback (T&Cs apply) |
| UK Card Purchases | Free |
| UK Bank Transfers | Free |
| Other | CHAPS: £17.50 via Business Internet Banking, £25 via Store and telephone banking |
| Eligibility Criteria | |
|---|---|
| Company Type | Ltd, Partnership, SoleTrader, LLP |
| Maximum Turnover | £1M |
| Location | UK (excluding Channel Islands, Isle of Man and Northern Ireland) |
| Rates & Charges | |
|---|---|
| Cashback | 0.35% cashback (T&Cs apply) |
| UK Card Purchases | Free |
| UK Bank Transfers | Free for 25 months |
| Eligibility Criteria | |
|---|---|
| Company Type | Ltd, Partnership, SoleTrader, LLP |
| Maximum Turnover | £6.5M |
| Location | UK (excluding Channel Islands, Isle of Man and Northern Ireland) |
| Rates & Charges | |
|---|---|
| UK Card Purchases | Free Sterling Transactions |
| UK Bank Transfers | Free payments online, direct debits & internal transfers |
| Other | Subject to application, eligibility, credit check and T&Cs |
| Eligibility Criteria | |
|---|---|
| Company Type | Ltd, Partnership, SoleTrader, LLP |
| Maximum Turnover | £6.5M |
| Location | UK (not including the Channel Islands or the Isle of Man) |
| Rates & Charges | |
|---|---|
| UK Card Purchases | Free |
| UK Bank Transfers | 100 electronic payments out free per month, 20p thereafter |
| Other | UK Bank Transfers in: Free. UK Bank Transfers out: First 100 electronic payments out free |
| Eligibility Criteria | |
|---|---|
| Company Type | Ltd, Partnership, SoleTrader, LLP |
| Maximum Turnover | £25M |
| Location | UK |
| Other | Must be 18 years old or over. Must not already have a Lloyds Bank business account for this business. All lending is subject to status. Security may be required. A guarantee may be required for Limited Companies and Limited Liability Partnerships |
| Rates & Charges | |
|---|---|
| UK Card Purchases | Free |
| UK Bank Transfers | Free |
| Other | Monthly fair usage policy of 500 free simple electronic payments applies. Additional simple electronic payments cost 35p each. Charges for some bank transfers and card payments apply |
| Eligibility Criteria | |
|---|---|
| Company Type | Ltd, SoleTrader |
| Minimum Turnover | £1K |
| Maximum Turnover | £400K |
| Location | UK |
| Rates & Charges | |
|---|---|
| UK Card Purchases | Free |
| UK Bank Transfers | Free |
| Other | Monthly fair usage policy of 500 free simple electronic payments applies. Additional simple electronic payments cost 35p each. Charges for some bank transfers and card payments apply |
| Eligibility Criteria | |
|---|---|
| Company Type | Ltd, SoleTrader |
| Minimum Turnover | £1K |
| Maximum Turnover | £400K |
| Location | UK |
| Rates & Charges | |
|---|---|
| UK Card Purchases | Free |
| UK Bank Transfers | Free |
| Other | Monthly fair usage policy of 500 free simple electronic payments applies. Additional simple electronic payments cost 35p each |
| Eligibility Criteria | |
|---|---|
| Company Type | Ltd, SoleTrader |
| Minimum Turnover | £400K |
| Maximum Turnover | £6.5M |
| Location | UK |
| Rates & Charges | |
|---|---|
| UK Card Purchases | Free for 2 years, fees apply thereafter |
| UK Bank Transfers | Free for 2 years, fees apply thereafter |
| Other | Other fees & charges may apply |
| Eligibility Criteria | |
|---|---|
| Company Type | Ltd, Partnership, SoleTrader |
| Maximum Turnover | £999K |
| Location | UK |
Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. Use the sorting options at the top of the comparison table to order by other criteria.
Last updated on 30 May 2023.
What are business bank accounts with overdrafts?
Business bank account providers often offer account-holders the option of using an unsecured arranged overdraft. An overdraft facility allows you to borrow up to your arranged limit and interest charges are usually payable on the amount you borrow, which are often paid on a monthly basis. Interest charges will vary between accounts, so it is important that you carry out some research to make sure you are happy with the overdraft terms and charges before borrowing. Arrangement fees and other charges are also often payable when setting up a business bank account with an overdraft.
Who might want to open a business bank account with an overdraft?
Business owners or sole traders who would like help with their cash flow might desire access to a business bank account with an overdraft facility. Alternatively, an arranged overdraft could help you to meet the costs involved with growing your business or dealing with seasonal fluctuations in income. For example, if you need to pay wages through a quiet period for your business, an overdraft may be useful as you can repay the money during busier periods when your income increases.
Will I be subject to a credit check when opening a business bank account with overdraft?
Yes, you will usually be credit checked before being offered an arranged overdraft. As well as your own credit history, providers could also take those of other directors into account.
Opening business bank accounts with overdrafts can sometimes be slightly more time-consuming and complicated than opening a simpler online business bank account as a result of the extra checks, but you can still often arrange an overdraft and get access to the cash within a matter of days.
Is an overdraft a secured loan?
Not usually. In most cases business overdrafts do not require security, much in the same way as personal overdrafts are unsecured. As a result, they are often limited in terms of value when compared to secured business loans, for example.
In some cases, you may be required to offer some security in order to access an arranged business overdraft.
Do all business bank accounts offer overdrafts?
Many do, especially those offered by the larger banks. However, online-only business bank accounts, and those aimed at small businesses and freelancers are often more limited in their offering and may not carry credit facilities of any kind.
How long can I take out a business bank account with overdraft for?
Business overdrafts sometimes have term limits and it’s important to consider whether you will be able to repay the money borrowed within that timeframe.
What other services do business bank accounts with overdrafts offer?
Most business bank accounts with overdrafts will offer the full range of banking services. However, this will vary a little from provider to provider, so check the details of your account. Services offered by business bank accounts with overdrafts usually include: