Business accounts with overdraft

What is an overdraft in business?

A business overdraft is a type of short-term financing offered by banks to business accounts. With an overdraft, a business can withdraw more money from its bank account than is currently available, but within the agreed limit. In general, this allows the business to cover short-term or unforeseen expenses, manage changing cash flows, etc.

Business loan calculations for 3 years (example)

How does a business overdraft work?

First of all, the bank and the company agree on the maximum amount that can be overdrafted. For example, if the company has £5,000 in its account, the overdraft limit set by the bank is £8,000. This means that a company can withdraw a maximum of £13,000 from their account if needed.

It is worth noting that interest is charged not on the entire limit, but on the amount of the excess. If we talk about the interest rate for an overdraft, it will usually be higher than for other forms of credit.

In the process of issuing and using an overdraft, the company should be prepared for such commissions - for establishing an overdraft, monthly or annual commissions for using an overdraft. Fines and even higher interest may be imposed for exceeding the agreed limit.

Since an overdraft is a revolving line of credit, the business can repay it at any time and borrow again as needed, provided the agreed limit is not exceeded.

Our analysts have studied the UK market and selected on this webpage the best offers with competitive rates and commissions for your choice.

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Details of companies offering the financial services:

Allied Irish Banks

Head office’s address: 10 Molesworth Street, Dublin 2

Contact center: +353 (0)1 6600311

Phone: +353 (0)1 6600311

Web-site: https://aib.ie/

Swift code: AIBKGB2LSDV

Stock code: 13NZ

BSB: AIBK

Bank of Scotland

Head office’s address: The Mound, Edinburgh EH1 1YZ

Phone: +44 (034) 5721 31 41

Web-site: http://www.bankofscotland.co.uk/

Swift code: BOFSGB31

Reference number: 169628

Stock code: 0076540

ABN: SC327000

BSB: BOFS

Barclays Bank

Head office’s address: 1 Churchill Place, London E14 5HP

Contact center: 0800-400-100

Phone: +44 (034) 5734 53 45

Web-site: http://www.barclays.co.uk/

Swift code: BARCGB33

Reference number: 122702

Stock code: BARC

ABN: 01026167

BSB: BARC

Danske Bank A/S

Head office’s address: 75 King William St, London EC4N 7DT

Phone: +44 (020) 741-080-00

Web-site: https://danskebank.com

Swift code: DABAGB2L

Reference number: 124655

ABN: BR000080

HSBC Bank

Head office’s address: Unit 8, Canada Square, Retail, London E14 5AH

Phone: +44 345 740 4404

Web-site: https://www.hsbc.co.uk/

Swift code: HBUKGB4B

Reference number: 114216

Stock code: HSBA

ABN: 00014259

BSB: HBUK

Lloyds Bank

Head office’s address: 25 Gresham Street, London EC2V 7HN

Contact center: 0345-300-0000

Web-site: https://www.lloydsbank.com/

Swift code: LBGTGB22

Reference number: 119278

Stock code: LLOY

ABN: 00002065

BSB: LBGT

Metro Bank

Head office’s address: One Southampton Row, London, WC1B 5HA

Phone: +44 (034) 5080 85 00

Web-site: https://www.metrobankonline.co.uk/

Swift code: MYMBGB2L

Reference number: 488982

Stock code: MTRO

ABN: 06419578

BSB: MYMB

NatWest Bank

Head office’s address: 250 Bishopsgate, London, EC2M 4AA

Contact center: 0800-88-11-77

Phone: +44 345 788 8444

Web-site: https://www.natwest.com/

Swift code: NWBKGB2

Reference number: 121878

Stock code: GBP1

ABN: 00929027

BSB: NWBK

Royal Bank of Scotland

Head office’s address: 36 St Andrew Square, Edinburgh, EH2 2YB

Contact center: 0345-600-2230

Phone: +44 (070) 3597-88-42

Web-site: https://www.rbs.co.uk/

Swift code: ROYCGB2LCLS

Stock code: NWG

ABN: BR000548

BSB: ROYC

Santander

Head office’s address: 2 Triton Square, Regent's Place, London, NW1 3AN

Contact center: 0800-389-7000

Web-site: http://www.santander.co.uk/

Swift code: ABBYGB3E

Reference number: 106054

ABN: 02294747

BSB: ABBY

Starling Bank

Head office’s address: 5th Floor, London Fruit And Wool Exchange, 1 Duval Square, London, E1 6PW.

Phone: +44 20 7930 4450

Web-site: https://www.starlingbank.com/

Swift code: SRLGGB3L

Reference number: 730166

Stock code: STERLNB

ABN: 09092149

BSB: SRLG

The Co-operative Bank plc

Head office’s address: 1 Balloon Street, Manchester M60 4EP

Contact center: 159

Phone: +44 (034) 5721 22 12

Web-site: http://www.co-operativebank.co.uk/

Reference number: 121885

ABN: 00990937

TSB

Head office’s address: Henry Duncan House, 120 George Street, Edinburgh EH2 4LH

Phone: +44 (034) 5975 87 58

Web-site: http://www.tsb.co.uk

Swift code: TSBSGB2A

Reference number: 119278

Stock code: 94AQ

ABN: SC095237

BSB: TSBS

Ulster Bank

Head office’s address: Block B Central Park, Carmanhall And Leopardstown, Dublin, D18 N153

Phone: +44 (012) 6850 08 13

Web-site: http://digital.ulsterbank.co.uk/

Reference number: 122315

Stock code: Bk. 11.75 (FAP)

ABN: R0000733