Business Overdrafts

We no longer offer Business Overdrafts to new customers in Great Britain.

An Overdraft is a short-term safety net for your business finances. We will agree the amount your business current account can go overdrawn by. An overdraft is repayable on demand. There are charges involved when taking out a business overdraft. A lending fee and an annual renewal fee will be charged as well as overdraft interest.

An overdraft on your business account can be used to cover the time between when you sell your goods and when you get paid for them. It is often used to cover short term or seasonal cash flow requirements. It is a very important tool to manage your cash-flow.

Key Features and Benefits of a Bank of Ireland UK Business Overdraft

Running your own business uses a lot of energy and focus. Cash flow is one less thing to worry about when you use our business overdraft on your business current account at Bank of Ireland UK. An overdraft is repayable on demand. That means we can ask you to pay it back at any time.

  • Our overdraft interest rates are variable and are made of two parts: the Bank of Ireland UK base rate and a margin rate. The interest rate is variable and will change if either part changes. Any changes to the base rate or any decrease in the margin rate will normally take effect immediately.
  • The Bank of Ireland UK base rate is currently 4.75%.
  • The ‘margin rate’ is the amount we charge on overdrafts over our base rate.
  • You can repay your overdraft at any time.
  • It’s arranged with us in advance so it will be there for when you need it.
  • There is no minimum amount.
  • Lending criteria, terms and conditions will apply.
  • Security, including a personal guarantee may be required to support your borrowing requirements. There may be additional cost if security is required.
  • There are charges involved when taking out a business overdraft. A lending set-up fee will be charged as well as an annual renewal fee. Should you exceed any arranged authorised overdraft, additional charges, and a higher rate of interest on the unarranged overdraft amount will apply. Please refer to our Schedule of Charges for Business Customers brochure for more information. This can be found on our Useful Documents page
  • For more information on rates for unsecured business overdrafts up to £25,000 please visit our Unsecured Business Lending page

 

Eligibility

  • All directors, owners or partners must be aged 18 or over.
  • The overdraft must be used for business purposes.
  • A Bank of Ireland UK Business Current Account is required.
  • If you don’t have a Bank of Ireland UK current account then you can find out about how to open one here Business Current Accounts – Bank of Ireland UK.
  • The account must operate in credit for a minimum of 30 days in every 12-month period.

Enquiring about a Business Overdraft

We can offer the right type of funding to help your business grow and succeed. Whether you’re a start-up, or looking to boost your existing business, we’re here to help. If you would like more information about a Business Overdraft, please get in touch.

We want to make sure an overdraft is right for your business needs and make sure you are eligible. Here’s some of the information we might ask you for. Your account manager will be able to give you more information.

 

Your financial Circumstances

To help us decide if we can give you an overdraft we will need the following detail

Income How much personal income do you earn. We also need details of what you owe.
Bank Statements 6 months bank statements. This is for both your personal and business account.
Financial Information Most recent year-end accounts for your business
Cash Flow Forecast This should be realistic and detailed and include;

  • Monthly incoming funds and monthly outgoing costs
  • Sales and cost of sales
  • Timing of sales and payments

 

Business Plan

We’ll need a business plan to help us see how we can help you reach your goals.

We’ve given a few useful tips below to help you with your business plan. We’ve also added a template to help you set it out. We’re here to help. You can find lots of great articles to help you write a business plan. Simply search ‘writing a business plan’ on Thinkbusiness.ie.

 

Useful tips to use when thinking about your Business Plan

 

 What are the main opportunities?
What are the main challenges?
What does the current or future market for your business look like?
What are you doing to plan for the future?
What flexibility do you have to deal with future challenges?

Business plan template

Further information about Bank of Ireland UK business overdrafts can be found in the Guide to Banking for Business Customers under the section titled “Your borrowing needs”. This is available on the Useful Documents page of our website.

Additional Banking Services

We have local teams on hand to support you to grow your business. They can work with you on a range of borrowing and cashflow solutions, such as Commercial Finance and Asset Finance. If you’d like to know more, we’d love to hear from you.