Business overdraft
A smarter overdraft for your business
Supporting businesses
At Starling, we understand this is a difficult time to be running a business and we’re doing everything we can to help our customers. As always, you can manage your finances from the Starling app, and our customer support team is here for you 24/7. You can get in touch with them via phone, email or in-app chat.
Has your business been affected by coronavirus?
The government has launched a £350bn stimulus package - have a read of our coronavirus support blog posts to find out more. We’ve also published a few tips that may help small businesses coping with coronavirus.
There are two financial support schemes that the government has announced. Starling has been confirmed as an accredited lender and we want to explain how we can help you.
The Coronavirus Business Interruption Loan Scheme (CBILS)
The CBILS with Starling is available for overdrafts from £50,001 up to £150,000 for limited companies and LLPs. Apply for the CBILS.
The business Bounce Back Loan Scheme (BBLS)
The business Bounce Back Loan Scheme provides loans of £2,000 to £50,000. As an accredited lender, Starling is offering loans under this scheme. Information on eligibility criteria and to join our BBLS list.
The government have also announced:
- Small business grant funding
- A Statutory Sick Pay relief package for SMEs
- A Coronavirus Job Retention Scheme
- Deferring VAT and income tax payments
- A 12 months business rates holiday for certain businesses
Update on non-CBILS/BBLS business lending
Our focus at the moment is on delivering CBILS and BBLS borrowing as quickly as we can to our customers. We are not accepting applications for non-CBILS or non-BBLS Starling business loans or overdrafts at the moment.
The following information is applicable to non-CBILS/BBLS lending so is not currently relevant to lending applications.
With a Starling business overdraft you get...
Our interest rates
Sole trader: 15% EAR (variable).
Limited companies and limited liability partnerships: 5%, 10% and 15% EAR (variable) based on our assessment of your business - representative 10% EAR (variable). At setup, we charge a fee of 1.5% (minimum £50) of your agreed limit, which is charged annually.
Interest is accrued daily and charged on the 15th of the following month and it’ll always be updated clearly in your app.
Limits to suit your business
If you’re a sole trader, you can apply for an overdraft limit from £250 up to £10,000.
If you’re running a limited company or limited liability partnership, you can apply for an overdraft limit from £250 up to £150,000.
Complete control
Once your overdraft limit is approved, you can use the in-app slider to reduce the amount of your overdraft – just in case you fancy a slightly smaller safety net.
Gone over the limit?
If you accidentally go over the overdraft limit you’ve agreed with us, we’ll apply the same interest rate as for your arranged overdraft.
Starling offer overdrafts of up to £150,000 to customers who already have a business current account and meet the following criteria:
- Trading for more than 18 months
- Have a good credit history (your business and all directors/partners) - this means no arrears or defaults
- All directors are over 18 years old
- All directors/partners in the business must also be willing to provide a personal guarantee if you are a Limited Company or Limited Liability Partnership.
An EAR (Equivalent Annual Rate) is a common way of showing interest rates on overdrafts which you can use to compare different banks’ interest rates. This does not include fees (such as set-up or annual renewal fees).
The Representative EAR is the rate we expect at least 51% of our customers to get.
| | Cost | Rate (% EAR variable) |
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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.