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 Business overdraft

Give your business room to grow

See how much you could borrow before opening a business bank account with us. Borrow up to £2 million, and get a dedicated relationship manager who’ll get to know your business.

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Fast to apply, faster to use

Start using your overdraft as soon as it's been set up. So you can focus on what really matters – running your business.

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Access up to £2 million

Whether it’s bridging cashflow gaps, or staying flexible, pay interest only on what you use.

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Overdrafts made human

You’ll get a dedicated relationship manager who understands your business as well as you do.

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What could our overdraft do for your business?

For slower months to busy spells, our overdraft gives you the breathing room to manage short-term cashflow and stay in control.

  • Manage seasonal dips in income
  • Bridge gaps while waiting for invoices to be paid
  • Cover short-term operating costs
  • Handle emergencies and unexpected costs

How much can I borrow, and how much will it cost?

Get your business moving with our overdraft. To see how it could work for you, take a look at our calculators below.

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See how we stack up
against the others

No two businesses are alike, and neither are two banks. Take a look at how we stand out from the rest.

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Get a decision, even if you don’t bank with us

Get a decision on your overdraft before switching

We'll let you know how much you could borrow before you need to open a business current account with us.
Dedicated relationship manager contact

Dedicated relationship manager contact

With our business overdraft, you'll get a named relationship manager right away. We'll give you their contact details, and they'll take the time to understand your business and give you bespoke advice.
Overdraft cost calculator

Overdraft cost calculator

Estimate how much your business overdraft could cost with our calculator.
Growth Guarantee Scheme (GGS) business overdrafts available

Growth Guarantee Scheme (GGS) business overdrafts available

We're approved to offer business overdrafts through the Growth Guarantee Scheme (GGS). It’s a government initiative designed to support access to finance for UK small businesses as they look to invest and grow.
Pay interest only on what you use

Pay interest only on what you use

Interest on your overdraft is only charged on the amount you borrow, not the full amount you have access to.
allica-bank-hat-icon
Allica Bank
barclays
Barclays
lloyds
Lloyds
natwest
NatWest
hsbc
HSBC

The information contained in this comparison table is accurate as of 8 May 2026.

“Allica's business overdraft has given me the peace of mind to really focus on growth.”

Geoff Todd
Founder, Farsight Digital Solutions

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How to apply for
a business overdraft

We’ll just need a few details from you to get you started.

step one

Apply

We’ll take some information from you about your business, and to make it easier, you can securely connect your business bank accounts to upload your documents.

step two

Get a decision

We'll review your application and let you know what other information we need before signing and approving your limit.

step three

Go

Start using your overdraft once your Business Rewards Account is set up and activated.

step one

Apply

We’ll take some information from you about your business, and to make it easier, you can securely connect your business bank accounts to upload your documents.

step two

Get a decision

We'll review your application and let you know what other information we need before signing and approving your limit.

step three

Go

Start using your overdraft once your Business Rewards Account is set up and activated.

Who can apply for a business overdraft?

Our business overdraft is made for Business Rewards Account customers who need the flexibility and tools to grow their business and:

  • Need an overdraft over £25,000 for business purposes.
  • Are a UK limited companies or Limited Liability Partnership.
  • Have been trading for at least 24 months.
  • Generate an annual turnover above £500,000 (or above £300,000 if the application is supported by the Growth Guarantee Scheme) and be profitable.

If your overdraft application is approved but you don't already have a Business Rewards Account, you'll need to open one before your overdraft can be set up.

See how much you could borrow
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Product information

Product guide

Overdraft terms and conditions

Growth Guarantee Scheme

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A more rewarding overdraft for your business

Our business overdraft is part of our Business Rewards Account – designed especially for established businesses who want a more rewarding and powerful way to bank.

  • Up to 4.08% AER1 on instant access savings
  • Up to 1.5%2 cashback on all card spends
  • Up to 150 free Faster Payments a month

All with no monthly fees3 when you have a business overdraft with us – even if your balance was below £10,000 the previous month.

Growth Guarantee Scheme

Allica Bank is approved to offer overdrafts through the Growth Guarantee Scheme (GGS). It’s a government initiative designed to support access to finance for UK small and medium businesses as they look to invest and grow.

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Applying for an overdraft
is quick and easy

We’ll just need a few details from you to get you started.

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Step 1: Apply in minutes

Securely connect your bank accounts and upload your documents, all in one place.

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Step 2: Get a decision

If your application is approved (subject to status), we'll email you some final documents to sign.

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Step 3: And you’re off!

Once everything is signed, your overdraft will be available in your Business Rewards Account and ready to go whenever you need it.

Eligibility criteria

Allica’s business overdraft is made for Business Rewards Account customers who need the flexibility and tools to grow their business and must:

  • Need an overdraft over £25,000 for business purposes
  • Be a UK Limited Company or Limited Liability Partnership.
  • Have been trading for at least 24 months.
  • Generate an annual turnover of more than £500,000 and be profitable.

If your overdraft application is approved but you don't already have a Business Rewards Account, you'll need to open one before your overdraft can be set up.

Product information

Make sure you read the documents below carefully before you apply for an overdraft. If something isn't clear, or you need a helping hand, please get in touch.

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A little extra breathing room is only a few clicks away

If you don’t have a Business Rewards Account, get in touch by calling us or filling out this form and we’ll get you set up.

Already an Allica customer? Send us a message through online banking.

Apply for overdraft

FAQs

A business overdraft is a short-term lending option that gives your company flexible access to additional funds when cashflow is tight. You’ll have a pre-agreed limit that you can use whenever needed, and you’ll only pay interest on the amount you actually borrow. You can repay and borrow again as often as you like, provided you stay within your agreed limit.

Business overdrafts are available to UK-registered limited companies and Limited Liability Partnerships that:  

  • Have (or are happy to open) a Business Rewards Account as their main business current account via which they’ll manage all UK turnover
  • Have been trading for more than 24 months 
  • Have a turnover of more than £500,000 (or above £300,000 if application supported by the Growth Guarantee Scheme)
  • Can show that they’re profitable

We offer overdrafts from over £25,000 up to £2 million. The limit you’re offered will depend on things like your turnover, credit history, outstanding invoices and our lending criteria.

You’ll pay:

  • a 1.5% arrangement fee on your agreed overdraft limit
  • interest on what you use (not what you don’t), charged at a margin above the Bank of England base rate

Our interest rates usually range between 3.75% and 11% depending on the size of your overdraft. We don’t charge a non-utilisation fee.

You don't need to have a Business Rewards Account to apply for our business overdraft. However, you’ll need to open a Business Rewards Account and make it your main business current account before an overdraft can be offered.

You can apply online at any time. We’ll ask for your details like how much you’d like to borrow, what you’ll use it for, and your latest accounts and bank statements.

Approval depends on your financial circumstances, borrowing history and our lending criteria. You can apply for a business overdraft online in a few minutes, but the length of time it takes to get approved depends on your individual circumstances and is based on the quality and completeness of the information you provide to us.

You only pay interest on overdrawn balances. Interest is taken from your account monthly. Overdrafts are repayable on demand and reviewed annually.

All applications are subject to status, approval and our lending criteria.

No, overdrafts are only available for business purposes.

Yes, overdrafts are repayable on demand and subject to annual review.

You can request to increase, reduce, or remove your overdraft limit. Please contact your relationship manager to discuss your specific circumstances.

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Help, my question isn’t answered here.

Don’t worry, find the answer in our Help Centre or speak to our team on 0330 094 3333.

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1 Rate includes standard rate of 2.83% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, and a 0.5% boost for six months if you complete a switch with CASS and a 0.25% Welcome Boost for 3 months for new customers who deposit £50,000+ into their Savings Pot within 14 days. Rates correct as of 19th December 2025. ‘AER’ stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Subject to eligibility – see Savings Pot Key Product Information for more details.

2 Cashback is variable and based on card spend. Exclusions apply. See a full list of limits and fees here.

3 Customers whose balance falls below an average of £10,000 in the previous month will incur a £25 monthly fee. This does not apply to customers who hold an active loan product (including an overdraft) with Allica Bank. Account fees are based on average account balance and activity status. See more details here. Terms and conditions apply.

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