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Business overdraft

Apply for a business overdraft

Starling app overdraft interface
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At Starling, we know that a business overdraft can act like a short-term safety net when your businesses cash-flow needs a little extra support. Simple, flexible access to borrowing. Only pay interest on the balance you’ve used.

We are offering business overdrafts for limited companies and limited liability partnerships. You can apply for a business overdraft from £1,000 up to £50,000.

All applications are subject to a full credit assessment by our expert Lending team.

Apply for a business overdraft

Key product features:

  • Limits from £1,000 to £50,000
  • Personal guarantee will be required as security
  • Pay interest only on the amount borrowed
  • 1.75% arrangement fee at acceptance & annually
  • Available to limited liability companies and limited liability partnerships. We will not accept applications from sole traders
  • Subject to an annual review

Eligibility:

  • If you are not a Starling business customer then you will need to open an account and transfer your primary business banking. Please refer to our account terms and conditions to see if your business will be eligible for an account with us
  • Your business must have been trading for at least 24 months
  • UK-based: The borrower must be based in the UK and carrying out trading activity in the UK. We look at your Persons of Significant Control (PSCs) on Companies House too - you’ll need to have active PSCs and they must be UK-based.
  • Viability test: Your business must be viable, which is reviewed as part of our creditworthiness assessment
  • Credit and fraud checks for all applicants: Starling will undertake credit and fraud checks for all applicants. This will include a check on your business and its Directors/PSCs
    • This will include a check to see if you or your business have missed direct debit payments, missed lending repayments, defaults or have any County Court Judgements
    • We will see if you have been a director or PSC of other businesses that have become insolvent.
    • We will also check to see that your business hasn’t missed other payments, such as for loans or direct debits.
  • Your accounts and confirmation statements should be up to date on Companies House
  • We will not accept applications from companies that are Dormant on Companies House

What we’ll need to know:

  • Your personal and business details. The person completing the application must be a director or partner of the business applying for the facility and be currently authorised to act on its behalf. When we refer to “your business or your company” we are referring to a limited liability partnership or a private limited company as applicable
  • Your registered company number with Companies House
  • What do you need the money for, such as purchase of equipment, business expansion and working cash flow
  • The latest filed accounts for the business including your Profit and Loss statement and balance sheet
  • Where you hold a non-Starling Bank account, the last 6 months of statements

What you need to know:

  • All applications are subject to credit checks on both the company and directors
  • A full credit assessment is completed on all applications, which includes a check on whether your business can afford to repay the debt
  • Your company is responsible for repayment of the loan, including all interest and your arrangement fee

Representative Example

EAR (Equivalent Annual Rate) is the rate you would pay if you go overdrawn to the full limit of your facility for the entire year. It takes into account the effect of compounding - charging interest on interest - on your drawn balance.

If you go over your agreed overdraft limit or payments aren’t made, your account could be defaulted or referred to our collections team.

Limit: Up to and including £25,000
Interest Rate (EAR): 11.50%*
Annual Fee: 1.75%

*This is the rate that we expect at least 51% of people who are accepted for a Business Overdraft to receive.

How to apply for a Starling business overdraft

Start your application for a Starling business overdraft (£1,000 to £50,000).

We’re offering business overdrafts to limited companies and limited liability partnerships.

The person completing this form must be a director or partner of the business applying for the facility and be currently authorised to act on its behalf. When we refer to “your business or your company” we are referring to a limited liability partnership or a private limited company as applicable.

FAQs

  • What is a business overdraft?

    A business overdraft is a line of credit on your business current account that provides you with a short-term cash-flow solution. It allows transactions to be paid from the account should your account balance be insufficient.

  • Can I have a loan and an overdraft?

    Yes, however each application is subject to a full credit assessment.

  • What rate will I receive?

    Each application is subject to a full credit assessment. The rate you are offered will depend on your individual business’ circumstances.

  • Are you taking Personal Guarantees or any other security?

    Yes, we are taking Personal Guarantees from the people that run the business.

  • What is a Personal Guarantee?

    When you provide a Personal Guarantee you are agreeing to act as a Guarantor for the debt obligations of the company. If your company were to default on its loan or overdraft payments that means that you’ve guaranteed that you’ll pay instead.

  • Are there any other options?

    Starling is currently offering business loans of £25,001 up to £250,000. Please visit our business loans page for more information.

Are you a commercial finance broker?

We run a Lending Partner Programme for SME lending. To be eligible you will need to be a FCA registered broker and a member of the NACFB. Get in touch with our SME partnerships team to find out more about the Lending Partner Programme.


Already have a business overdraft with Starling and you need help or are worried?

Our customer support team is here for you 24/7. You can get in touch with them via phone, email or in-app chat.

Apply for a Starling business account today and enjoy app-based banking at its best.

Start your application
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