Compare Business Bank Accounts with Overdrafts

  • Some business bank accounts come with overdraft facilities to aid flexibility in your day-to-day operations
  • Business bank overdraft rates and charges very between products and lenders so check before applying
  • Compare business accounts with overdraft features from UK providers and apply direct online

Choose your business current account options

10 products found
  • HSBC logo

    HSBC Kinetic Business Account

    • Monthly Fee
      £6.50*
    • Card Purchases
      Free
    • Bank Transfers
      Free
    • Overdraft
    • Access
      App & Online
    • Virgin Money logo

      Virgin Money M Account for Business

      • Monthly Fee
        Free
      • Card Purchases
        Free
      • Bank Transfers
        Free
      • Overdraft
      • Access
        App/Online
    • Virgin Money logo

      Virgin Money Business Current Account

      • Monthly Fee
        £6.50
      • Card Purchases
        Free
      • Bank Transfers
        Free
      • Overdraft
      • Access
        Branch, app & online
    • See 1 more Virgin Money product
    • NatWest logo

      Natwest Start Ups Business Bank Account

      • Monthly Fee
        Free
      • Card Purchases
        Free
      • Bank Transfers
        35p
      • Overdraft
      • Access
        App & Online
    • NatWest logo

      Natwest Business Bank Account (Standard Tariff)

      • Monthly Fee
        Free
      • Card Purchases
        Free
      • Bank Transfers
        35p
      • Overdraft
      • Access
        App & Online
    • See 1 more NatWest product
    • Cashplus logo

      Cashplus Business Bank Account

      • Monthly Fee
        Free
      • Card Purchases
        Free
      • Bank Transfers
        30p
      • Overdraft
      • Access
        App & Online
    • Cashplus logo

      Cashplus Business Bank Account with 1% Cashback

      • Monthly Fee
        £69 per year
      • Card Purchases
        Free
      • Bank Transfers
        99p
      • Overdraft
      • Access
        App & Online
    • See 1 more Cashplus product
  • The Co-operative Bank logo

    The Co-operative Bank Business Current Account

    • Monthly Fee
      £10*
    • Card Purchases
      Free
    • Bank Transfers
      Free
    • Overdraft
    • Access
      Branch, App & Online
  • Royal Bank of Scotland logo

    RBS Start Ups Business Bank Account

    • Monthly Fee
      Free
    • Card Purchases
      Free
    • Bank Transfers
      35p
    • Overdraft
    • Access
      App & Online
  • Lloyds Bank logo

    Lloyds Bank Business Banking Start Up Account

    • Monthly Fee
      £7*
    • Card Purchases
      Free
    • Bank Transfers
      Free
    • Overdraft
    • Access
      Branch, App or Online

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 drop down menu at the top of the page to order by other criteria.

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Last updated on 04 August 2022.

Business Bank Accounts with Overdrafts

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:

  • Accepting deposits
  • Providing debit/credit card
  • Bank transfers
  • Cash withdrawals
  • Direct debits
  • Standing orders
  • Chequing facilities
  • Online banking
  • Phone banking
  • Money management apps

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