Business BankingBusiness Overdraft
Want easy to arrange, flexible borrowing to suit your circumstances? Then our Business Overdraft could be just what your business needs to help manage fluctuations in cash flow or to respond to emergencies.
Flexible access to more funds
Sometimes, a little more cash flow can give your business some much needed room to manoeuvre. Or maybe you need to make a one-off purchase for the business that you know you can repay quickly? Our Business Overdraft can help you.
- Pay interest only on the amount you use – interest is calculated on a daily basis
- Easy to arrange
- Choose between a one month and up to 12 month facility
- An arrangement fee applies when we agree to a formal overdraft request
- Reviewed annually and a renewal fee taken
- HSBC Business Current Account required.
- In some cases, security will be required. Your home may be repossessed if you do not keep up repayments on a facility secured by it.
Rates and charges – further information
- For overdrafts agreed following a formal request: – an arrangement fee (PDF) applies when we agree a formal overdraft. The facility is normally reviewed annually and a renewal fee (PDF) taken if renewed
- For overdrafts agreed following an informal request: - overdraft charges will be applied on each working day that the informal overdraft remains in place. The rate of the overdraft charge per working day will differ depending upon whether the debit balance on the account is over its formal limit or the account is overdrawn with no formally agreed limit in place.
- Click here to see our interest rates
How to prepare your borrowing application
When HSBC assesses a borrowing request, we look at a range of factors to determine the risk of lending to the business. Visit our Guide to Business Borrowing pages to find out more about the information and documents you may be asked for depending on whether you bank with us already, are a new customer or are starting up your business.
Download a printable version (PDF).
How to arrange your Business Overdraft with us
- Formal overdraft – A formal overdraft request is when you approach us in advance to set up an overdraft for a period of up to 12 months. Interest rates are individually agreed with you and the rate linked to the Bank of England Base Rate. Your debit interest rate margin will be re-assessed at each overdraft facility review and may change at this time, although we will give you notice of this.
- Informal overdraft – An informal overdraft request is where you do not contact us in advance and you make payments from your account which would, if processed by us, cause your account to go overdrawn or over an existing formally arranged overdraft limit. For informally agreed overdrafts, where you have an existing formally agreed limit and go over this limit, we will charge interest at the rate we have agreed with you on balances up to your facility limit and will charge our Business Standard Debit Interest Rate on any balance over your formally agreed limit.
Where you have no existing formally agreed overdraft limit, we will charge our Business Standard Debit Interest Rate on all debit balances. - If you anticipate that you may want to make frequent informal overdraft requests it may be cheaper for you to apply in advance for a formal overdraft.
Important information
- For more information about our interest rates, overdraft fees and other charges see our Business Banking Price List (PDF)
- Interest rates
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Apply for a Business Overdraft
Not quite what you're looking for
- Small Business Loan – Finance your business growth with a fixed monthly payment loan.
- Business Credit Card – Our Commercial Card is fee-free for the first year2 and offers up to 56 days interest free credit.
- Business Invoice Factoring – Invoice Finance – Improve your cashflow by releasing cash from your invoices.
Apply for a Business Overdraft
- Apply now
- or call us on:
0800 731 89321 - Textphone 18001 0800 028 3516
- Request a call back
- Request a webchat
- Find a branch
Why choose HSBC?
- A Business Banking package to meet your business needs
- Superior service and support4
- Easy to switch
- Choice of business accounts
Guide to business borrowing
Use our Guide to business borrowing to help you choose the right type of borrowing or finance and prepare a stronger application.
Guide to Business Borrowing
Use our Guide to business borrowing to help you choose the right type of borrowing or finance and prepare a stronger application.
The links on this page will open a new browser window and may:
i) Allow you to access other websites. Please read the linked websites' terms and conditions. HSBC Bank plc has no control over non-HSBC websites and is not liable for your use of them.
ii) Allow you to access another HSBC Group website. Please read the terms and conditions of the linked website, which may differ from the terms and conditions of HSBC Bank plc's website.
1 Lines are open 8am to 10pm every day (except Christmas Day, Boxing Day and New Year's Day). To help us continually improve our service and in the interests of security, we may monitor and/or record your telephone call.
2 After the initial 12 month period, the annual charge for one Commercial Card is £32, for two or more cards it is £64. Application subject to status. Terms and Conditions apply.
3 During our Sale period, applications for business overdraft facilities up to and including £5,000 that are accepted by 28 February 2011 will only be charged an arrangement fee of £50, reduced from £100.
4 Award winning service delivered in branch, over the phone and online - voted Best Business Bank for Service 2010 & 2011 and Best Online Banking Provider 2011 by Moneyfacts Magazine.
