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Stay in control of your cash flow – flexible Overdrafts for growing businesses
Business Overdraft
A little extra peace of mind for your business
Pay interest only on the what you borrow
Flexible monthly repayments
Ideal for unexpected bills
Flexibility during a Family First event
For existing NatWest customers for up to 12 months. After 12 months, we’ll contact you to review. Interested in our business current accounts? See the range.
Understanding Business Overdrafts
Security may be required. Product fees may apply. Over 18s only. Subject to status, business use only.
Tailored monthly payments
You can reduce your Business Overdraft by as much or as little as you want each month, with no set minimum pay back each month.
Borrow up to £50k unsecured*
If you wish to borrow up to £50k you can apply online. For more borrowing options, visit our loans page.
*Subject to credit approval.
Only pay interest on what you use
If you need a quick cash injection or help when an unexpected cost comes along, an overdraft is there if you need it. If you don’t use your Business Overdraft you won't pay any interest. Simple as that.
Overdraft flexibility for Family First events
We're committed to supporting our customers with the flexibility they need, especially when it matters most.
Representative EAR
Interest Rate %
5.25%
Arrangement Fee
£300
Representative EAR (Effective Annual Rate) is used for comparison purposes and shows the annual interest rate we reasonably expect at least 51% of customers who are accepted for and enter into the overdraft agreement to get. It is calculated by using the rate of interest charged if you remained overdrawn for a year, the frequency with which interest is charged, and the effect of compound interest on your debt. The Representative EAR does not include other fees or charges.
100% of SME customers who used the eligibility checker received an end quote that was the same, better or no more than 10% above their indicative quote.
What are the costs?
You'll only pay interest on the amount you borrow. But there is a setup fee that's connected to the size of overdraft you apply for. Please see the table below for a breakdown of our fees:
Overdraft Limit |
Arrangement Fee |
£500 and under |
£50 |
£501 - £1,500 |
£75 |
£1,501 - £5,000 |
£100 |
£5,001 + |
1.5% (minimum £150) |
What is a Business Overdraft?
A Business Overdraft is a flexible short-term lending option for businesses. It works as a safety net for unexpected expenses. It gives you an extra buffer in those times when you’re waiting for payments from customers and might not have enough money in your account to cover incoming expenses.
We offer tailored information to help you understand our overdraft options:
Useful info about our Business Overdraft
You can request a change to your overdraft online.
Increase limit
You can apply to increase your existing business overdraft up to £50,000 through Online Banking or the mobile app. If approved, you could have the funds within 24 hours.
For limit increases over £50,000, please contact your relationship manager.
You’ll need the personal details of all the partners, members, directors or signatories of the business (including their home addresses for the last 3 years). You’ll also need your business details, including your Company’s Registration Number (provided by Companies House) if you’re a limited company. Also, details of any countries you or your business is registered for tax purposes in and details of your business' year end accounts or cashflow forecasts. Find out more in the "Ready to apply" section below, which will help you to prepare.
Yes, it’s possible to have both a loan and an overdraft. It’s all based on your overall approved credit.
If you're an existing customer, it’s really important that your personal and business details are close matches to what we have on your file. If they're different, it will be worth updating them before you apply.
If in doubt, please check what is on file at Companies House and update any out of date information before you apply.
Please be accurate with your income declaration. If we believe you can't afford the repayments on the amount you apply, you may be declined.
For instance, if you declare an income of £250,000 and we see £180,000 going through your NatWest account, your application may be referred or declined.
You will need to speak to your relationship manager if you wish to borrow more than £50,000, or if your total debt with us exceeds £50,000.
A Business Overdraft allows you to pay for transactions that would take your account balance below £0, making it a safety measure for emergencies where you might be awaiting payment or transfers from clients.
You'll only pay interest on the amount you borrow. But there is a setup fee that's connected to the size of overdraft you apply for. Please see the table below for a breakdown of our fees:
Overdraft Limit |
Arrangement Fee |
£500 and under |
£50 |
£501 - £1,500 |
£75 |
£1,501 - £5,000 |
£100 |
£5,001 + |
1.5% (minimum £150) |
If you exceed your agreed Business Overdraft limit you will be charged an unarranged borrowing rate and be subject to unpaid / paid item fees.
What is an Overdraft?
An overdraft is a short-term borrowing facility attached to your business current account that allows you to spend more money than you have in your account, up to an agreed limit. It's designed to help with unexpected expenses or short-term cash flow gaps.
What is the interest margin?
The interest rate (sometimes called interest margin) is the cost of borrowing money through your overdraft. It is typically shown as a percentage over the base rate. The rate you pay depends on the amount borrowed, the agreed terms, and your business’s credit profile. Interest will be charged on any Overdrawn balance when you use your Overdraft.
What is the overdraft fee?
Arrangement fee: This is the fee for setting up or renewing your Overdraft facility. The fee you pay will be based on the size of your overdraft.
What is EAR?
The Effective Annual Rate (EAR) represents the usage cost of your overdraft, including the interest rate and any compounding of interest (interest calculated on balance+interest) over the year. The EAR helps you understand the total cost of borrowing on an annual basis, assuming that you remain in overdraft for the entire year. Fees are excluded from the calculation.
What is Credit Reference Search or Credit check?
A credit reference search or credit check is a review of your business’s credit history by the bank. It helps the bank assess your ability to repay an overdraft. The check typically involves reviewing your business’s financial history, including previous borrowings, repayment patterns, and overall creditworthiness.
To help support your overdraft application, we may ask for some form of security. This could be a personal guarantee (sometimes with supporting security) and, in some cases, a charge over your business assets. We’d only use this security if you do not keep up repayments on the overdraft. Any property or asset used as security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it.
Apply for a Business Overdraft
Thinking about a business overdraft?
Take a moment to explore whether it’s the right fit for your business. We’ve put together helpful information on what a business overdraft is, how it works, and what it might cost plus details on eligibility.
Not quite ready?
You can also browse all our lending options to find what suits you best.
Ready to apply?
Log in with your Online Banking details and get a quote in 3 mins, without affecting your credit score. If you apply and get approved, you may have the money in 24 hours.
Don't have Online Banking? Register today. Alternatively, you can call us on 0345 711 4477 or start a Cora chat.
Manage your overdraft
Looking to increase your limit?
As an existing customer you can log in using your Online Banking details and apply in less than 10 minutes. If approved, you could have the new limit in 24 hours.
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Want to decrease your limit?
Use our online application form to decrease your limit. If you don't have Online Banking, you can also use it to apply for a new overdraft or increase.
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No longer need an overdraft?
Use our online application form to request a cancellation if you are no longer actively using your overdraft.
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Boost your business with our lending options
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A personal, director or member's guarantee may be required. Over 18s only. Subject to status, business use only.
Need quick access to funds?
Log in to Online Banking and get a decision in less than 10 minutes. If approved, you could have the money within 24 hours.
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Stay on top of your expenses
Our business credit cards are ideal for making secure transactions and giving you flexible banking at your fingertips.
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Finance your long-term goals
Borrow from £25,001 with no upper limit on a variable interest rate, or up to £10m on a fixed interest rate, subject to approval.
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