Business overdrafts | Royal Bank of Scotland

Business overdraft

Business overdrafts can help day-to-day cash flow management

Security may be required. Product fees may apply. Over 18s only.
Any property used as security, which may include your home, may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

A business overdraft could help you manage unexpected costs

An overdraft for your business could give you greater flexibility when you need it most. You can choose what to use the overdraft for, providing there's an agreed limit and you have sufficient funds in your account.

Our business lending options
Features of our business overdraft
Pay interest on the amount you borrow

If you're successful in applying, you wont be charged any interest if you don't use your agreed limit.

(Other fees may still apply such as arrangement or security fees at the outset and charges for unarranged borrowing)

Review your agreed limit when it suits you

Speak to your Business Manager Team or relationship manager about changing your agreed limit before your overdraft agreement ends (subject to approval).

We'll also be in touch before your agreement ends, giving you the chance to talk to us about any future plans and borrowing needs.

Switching bank or starting a business?
Thinking of switching to Royal Bank?

If you're planning on switching to Royal Bank and already have a business overdraft with your current bank, we'll do our best where possible to match their terms with you when you switch.                                                                                                                                                      

Find out about switching your business to Royal Bank

Starting a business?

For start-up businesses which have opened a Business Current account with us, we may be able to offer you an arrangement fee-free £500 overdraft for the first year. We do however charge interest at a fixed rate of 6.5% for the initial agreement period (subject to status).

Learn more about our start-up package 

Business overdrafts Rates & charges

Our standard overdraft arrangement fees are set out below (Fees may vary depending on your business circumstances and related risks).

Additionally, the interest rate for an overdraft will be specifically catered for your business and you will be informed of this prior to completing your application. This is linked to the Royal Bank of Scotland base rate, which often mirrors the Bank of England's current base rate.

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Icon expand Overdrafts of £0 - 500

The arrangement fee for an overdraft facilitiy of £0-500 is typically £50. This is the same when requesting a new overdraft limit or renewing your existing limit.

This excludes any additional fees that may be charged if any security is required.

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Icon expand Overdrafts of £501 - £1500

The arrangement fee for an overdraft of £501 - £1500 is typically £100. This is the same when requesting a new overdraft limit or renewing your existing limit.

This excludes any additional fees that charged if any security is required.

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Icon expand Overdrafts greater than £1500

The arrangement fee for an overdraft of £1500 and above is typically 1.5% of the total overdraft amount (with a minimum fee of £150). This is the same when requesting a new overdraft limit or renewing your existing limit.

This excludes any additional fees that charged if any security is required.

Simple steps for your business lending application

Whether you’ve been with us for years or you’re a new customer, you can help us to give you a swift answer on a lending application.

Just have the necessary information ready when you apply. This includes:

  • What do you need to borrow the money for?
  • It sounds obvious but we need to know how much you need to borrow
  • How long do you want to repay the loan over?
  • Who are the owners/directors and what sort of business is it?

In addition, there are some specific documents we need to see dependent on your company size and past history with the bank.

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Icon expand Existing businesses banking with Royal Bank of Scotland

In addition to the above, we need to establish the current and previous financial performance of your business. We would look to see at least one of the following:

Year-end accounts

Ideally 2 years worth

Tax returns

Again, ideally 2 years worth

Business bank account statements

6 months worth

We also require information about what your business owns and what it owes to make sure your business is not over exposed to debt and you’ll be able to manage the repayments.

Proof of assets and debts

Details of any property, equipment, existing loans, mortgages, hire purchase or other monies owed.

If you need further explanation, try our section on understanding business finance basics.

 View understanding business finance basics

 

Where the amount of lending exceeds £25,000 we will ask for all of the above information as well as the following:

Owner investment in business

This gives us a good indicator of your commitment to the business.

Other business interests

We need to understand your level of involvement in the business and your track record.

Assets and security

For certain lending options, we may require some form of security such as a property, director’s guarantee or other assets to secure the funding. If security isn't available, there are other options such as government-backed and non-bank funds and schemes.

More about funds and schemesOther sources of finance

 

DownloadChecklist pdf (235kb)

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Icon expand New businesses to Royal Bank of Scotland

With no evidence of past financial performance, we would ask to see details of what your new venture will look like. We would also ask to see the following information from existing businesses that are expanding or taking a major change of direction.

Business plan

A detailed document describing the nature and structure of your proposed business.

Cash flow forecast/profit and loss

Financial projections to give us an idea of likely incomings and outgoings.

For help download one of our useful tools:

Download Cash flow forecast template (.xlsx 23kb)


Cash flow forecast guidance notes (pdf 703kb)


Checklist (pdf 235kb)

Download Profit and loss template (.xlsx 29kb)


Profit and loss guidance notes (pdf 1.1mb)

How to apply

New customers

Existing customers

Startup or business with a turnover under £2m?

0345 600 2230

Minicom:
0800 404 6161

Lines open 24/7
(Excl public holidays)
Calls may be recorded

 

Contact your business manager

Business with turnover over £2m?

0800 073 2257

Minicom:
0800 404 6161

Lines open Mon - Fri
9am - 5:50pm
(Excl public holidays)
Calls may be recorded

Contact your relationship manager

Get in touch

Whether you're a new or existing customer speak to one of our dedicated business specialists by calling BusinessLine on:

0345 600 2230
Minicom
0800 404 6160

Open 24 hours a day, 7 days a week, 365 days a year.

Alternatively you can speak to your business or relationship manager, who are available 9am-7pm Mon-Fri and Saturdays 9am-2pm.

Calls may be recorded.

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