Applying for a Business Overdraft

A business overdraft is simply a service which is provided as a feature of the business current account as opposed to being a separate product in its own right. Therefore shopping around for an overdraft is not required.

When it comes to applying for a business overdraft facility it usually entails a face to face meeting with the manager of the bank or building society where the business current account is held. The meeting is generally to establish whether the bank is prepared to offer an overdraft, what rate of interest will be payable and any other terms and conditions related to the overdraft.

A few points which may be worth considering include;

• What the funds will be used for?
• How long the funds will be required?
• How regularly will the overdraft be used?
• Can the funds be repaid within the agreed term?
• Is the overdraft facility enough or will it need to be topped up in the near future?

 

Guide Contents

Business Overdrafts
Finding the best Business Overdraft
Applying for a Business Overdraft
Frequently asked questions about Business Overdrafts
Where to get more help and advice about Business Overdrafts

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