Do I need to offer an asset as security for a business overdraft?

Business overdrafts are available in secured and unsecured form. If you choose a secured option, you will need to provide something as security, but not with an unsecured option.

How can I use the money from a business overdraft?

You can use the money from a business overdraft for any business-related expense. This could be paying employees or suppliers, buying equiptment or paying invoices.

What is the rate on a business overdraft?

The interest rate on a business overdraft will vary between banks and between customers too. Because it's a type of loan that is based on your risk profile and credit history, if you're deemed to be a high-risk borrower you will have a higher interest rate. You will be informed of the interest rate offered when you apply.

Is a business overdraft a good idea?

A business overdraft can be an excellent tool to help you manage your business cash flow. However, if you're unable to repay the money you use from your overdraft you could end up paying a lot of money in interest and additional fees, so make sure you only set one up if you're confident you can pay it off.

Do business accounts let you overdraft?

Most business bank accounts allow you to add on a business overdraft, but you need to apply for this seperately. Just becaue you're approved to open the business bank account doesn't mean you'll be approved to add an overdraft.