-
Business overdrafts

Business overdrafts

A flexible overdraft that moves with your business demands

An overdraft could help you deal with seasonal trends and short-term cashflow challenges. Borrow up to £50,000 unsecured – the money could be available to you in days.

What is a business overdraft?

A business overdraft provides you with access to additional funds up to an agreed amount that you can use as and when you need to. They can help with cashflow issues and unexpected expenses, and may be preferable to a business loan because you only pay interest on the overdraft balance.  

Unsecured overdrafts of up to £50,000 available to help with your day-to-day cashflow

Easy to arrange

Faster access to funds (if unsecured is approved)

Business bands

£1,000 – £5,000

£5,001 – £10,000

£10,001 – £15,000

£15,001 – £20,000

£20,001 – £25,000

Representative customer margin
(excludes Bank of England Base Rate)

10.39%

9.48%

9.07%

8.29%

8.29%

Representative EAR* (variable)

11.01%

10.01%

9.56%

8.72%

8.72%

Overdraft fees

From £95 up to £250

From £195 up to £295

From £225 up to £295

From 1.6% up to 2.5% of the limits

From 1.6% up to 2.5% of the limits

* EAR means Effective Annual Rate. We provide it to let you make comparisons against other overdraft products. To calculate the EAR, we take both your interest rate margin and the current Bank of England Base Rate, which you are charged on your overdraft, and compound it every month over a year. The EAR does not include any fees or charges that apply to your overdraft. It also does not take account of any future Bank of England Base Rate changes. There may be an overdraft fee applied to cover the cost of providing it.

* Rep EAR - representative Effective Annual Rate (representative EAR) is the advertised rate (or a lower rate) we reasonably expect will be offered to at least 51% of customers, who are accepted for and enter into the overdraft agreement as a result of the advertising or marketing. The rep EAR does not include any future Bank of England Base Rate changes. 

Interest will accrue daily and be applied to your business current account in arrears on a monthly basis.

Key features and benefits

If you need convenient access to short term borrowing fast, then a business overdraft could be right for you12.

Get cashflow support

Pay for stock and other costs without waiting for your sales income.

Flexible borrowing

You can apply to increase or decrease your overdraft limit as your business needs change.

Minimise borrowing costs

Only pay interest on overdrawn balances, which you can repay any time.


 

What you need to know

Increase or decrease your overdraft limit as circumstances change

Only pay interest on overdrawn balances, which you can repay at any time

Interest is calculated on daily overdrawn balances, at an agreed margin over the Bank of England base rate

Fees and interest are debited to your current account on our usual charging dates (available on request) either monthly or quarterly, in line with your current account tariff

Overdrafts are repayable on demand and typically reviewed annually

Overdrafts are subject to application and status

Ready to apply or want to find out more?

I have a Barclays business account

Log in to Online Banking to see your provisional lending limit without affecting your credit rating3. If you don’t have access to Online Banking give us a call on your usual number or 0333 202 74314. Lines are open Monday to Friday, 8am to 8pm.

I’m new to Barclays

Call us on 0800 515 4624 to see how we can help. Lines are open Monday to Friday, 9am to 5pm. We’ll need to see certain identification documents and financial statements when you apply.

You may also be interested in

Barclaycard for business

Manage cashflow and employee spending limits5with secured and unsecured options.

Up to 56 days interest-free when you pay your balance in full and on time

Variable rates after 56 days

Maximum borrowing dependent on circumstances

Invoice Finance

A quick and easy way to improve cashflow so you can seize business opportunities – provided by our partner MarketFinance6.

Unlock cash tied up in your invoices

Improve cashflow

Choose between flexible and ongoing funding 

Loans for large purchases and investments

Unsecured borrowing that helps businesses spread the cost of a purchase over a set period7.

Borrow up to £100,000

Fixed or variable rates

Monthly repayments from one to five years

All business borrowing

We can help you get off the ground or expand

Explore all of our business options

Higher loan7 and overdraft8 amounts might be available if you call 0333 202 74314

Other funding options

Compare our business borrowing with borrowing offered by other lenders9. You can find out more about the government’s Bank Referral Scheme [PDF, 1.4MB], including eligibility information.

Funding Options

Its award-winning technology searches the market to find the right funding for your business’ situation. It’s quick, easy to use, and their team’s on hand if you need help.

Alternative Business Funding

It offers a free and easy way to find different funding options, focusing on making things simple for business owners who don’t have much time on their hands.

Funding Xchange

It shows you competing offers from lenders, to make sure you see the best terms. You’ll see quotes from up to 45 lenders, in a simple format, so you can easily compare and choose the offer that’s best for your business.

Swoop

It shows you the broad range of funding options that are available to businesses across the UK and Ireland. After assessing your needs, it matches you with the right solution from over 1000 providers.