Start up businessBusiness Overdraft

Our start up Business Overdraft; flexible access to more funds

Sometimes, as a start up business, a little more cash flow can really help. Or maybe you need to make a one-off purchase for the business that you know you can repay quickly?

• 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 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 (PDF) applies when we agree a formal overdraft. The facility is normally reviewed annually and a renewal (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.

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, we will charge interest at the rate we have agreed with you (where you have an existing formally agreed overdraft limit and go over this limit) or at our Business Standard Debit Interest Rate where you have no formally arranged overdraft limit.
• 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.