Varies according to the lender, your business profile and any security you may offer
Interest rate and monthly (or annual) fee vary according to the lender, your business profile and how much of the overdraft you use
Same day if you are already a customer
Short-term working capital, to help you manage cash flow
All businesses – lenders may require a minimum turnover and trading history, and may value your assets
Whether you need cash quickly or you’re after a safety net that you can use occasionally, a business overdraft could be the answer. However, it’s become more difficult to get an overdraft with the major banks. Instead, you might want to consider alternatives such as a revolving credit line, a business credit card, a business cash advance or other types of working capital finance.
There are two obvious reasons you might want to use an overdraft: you might need cash quickly (i.e. you might need to access working capital buffer) or you might want a safety net to use occasionally in times of need.
It has become more difficult to get traditional business overdrafts from the major banks, especially if you are a small business. But don’t worry, there are lots of alternatives to business overdrafts. Here are some other types of working capital finance: