The best UK business bank accounts for an overdraft in 2026

The best UK business bank accounts for an overdraft in 2026 include the Co-operative Bank, Barclays, Metro Bank, Santander, Lloyds Bank and Monzo Business, though the right one for you depends on the limit you need, the rate you're offered and whether you already bank with them. Rates and limits are set individually based on your business and credit profile, so the figures below are representative examples rather than a guaranteed quote.

This guide compares what each of these business bank accounts offers for an overdraft side by side, then covers how to choose between them and which ones are quickest to qualify for as a newer business. Read our guide for a full explanation of how a business overdraft works.

Compare the best business bank accounts for an overdraft at a glance

A representative rate is an example rather than a guaranteed quote, so your own rate could be higher or lower depending on your business and credit history, and every rate above is variable, so it can move with the Bank of England base rate. Confirm current terms directly with the bank before applying.

Co-operative Bank: best for bigger limits without a relationship manager

The Co-operative Bank lets you apply for a far bigger limit than most other banks in this guide before you need to go through a relationship manager.

• You can apply for a limit up to £250,000 through the standard application process, well above the £25,000 to £60,000 ceiling most other banks in this guide set before involving a relationship manager.

• The representative rate on limits up to £25,000 is 10.20% EAR (variable)

• The arrangement fee is 1.5% of the facility (minimum £50), though it's waived for Business Bank Account Plus and Federation of Small Businesses customers.

• Applications under £25,000 get a decision within 10 working days, and larger requests are picked up by a relationship manager within 2 working days.

• Facilities above £250,000 are available on a bespoke, individually agreed basis.

Barclays: best for published fees at every limit tier

Barclays sets out its overdraft into 6 limit bands, each with its own published fee range, so you know roughly what to expect before you apply.

• The representative rate across these tiers is 13.89% EAR (variable), calculated daily on your overdrawn balance and applied monthly.

• The arrangement fee is set per tier, based on the facility size

• Overdrafts are repayable on demand and typically reviewed annually, and you can apply to increase or decrease your limit as your circumstances change.

• You can apply in minutes through their mobile app, if approved you can get access in as little as 48 hours.

Metro Bank: best for applying through your banking app

Metro Bank is built for applying without a branch visit or a phone call, with a decision and funding both available the same day through its app.

• You can apply for a limit up to £60,000 directly in the Metro Bank app, with an instant eligibility decision and same day funding once approved.

• The representative rate is 14.13% EAR (variable) for limits between £100 and £25,000. Above £25,000, up to the £60,000 ceiling, the rate is agreed individually when you apply.

• The arrangement fee is 1.75% or £50, whichever is greater, with no fee at all on limits up to £500.

• Your business needs to have traded for at least 7 months, have annual turnover under £40 million, and hold a Metro Bank business bank account.

• Overdrafts above £60,000 are arranged as commercial facilities through your relationship manager or local director instead.

• Unarranged borrowing is charged at 25% EAR (variable)

Santander: best for small, flexible amounts

Santander's overdraft starts lower than most on this list, which suits a business that only needs a smaller amount of flexible borrowing rather than a large facility.

• Overdrafts range from £500 up to £25,000.

• The representative rate on its Business Current Account Classic is 14.94% EAR (variable).

• The arrangement fee is 1.75% a year (minimum £100), charged when you first set up the overdraft and again at each annual renewal, with an additional charge if you increase your limit part way through the year.

• You'll need to already hold a Santander business current account, then call its business banking team to apply, providing your turnover, costs, projected turnover and existing debt repayments.

Lloyds Bank: best for an instant online decision

Lloyds Bank can give you a decision in the same session you apply, rather than asking you to wait for a callback.

• You can get an instant decision on limits up to £50,000 through Online for Business or the Lloyds app if you're a sole trader, partner or director with borrowing authority.

• For limits up to £25,000, the representative rate is 15.62% EAR (variable), made up of 10.85% above the Bank of England Bank Rate.

• Pricing depends on your limit size: a monthly fee of £12 for limits between £500 and £5,000, or an annual fee of 1.99% (minimum £150) for limits between £5,001 and £25,000.

• Limits above £25,000 have rates and fees agreed individually rather than published.

• Limited companies and limited liability partnerships may need to provide a guarantee.

• Unauthorised borrowing carries the same 10.85% margin above the Bank of England Bank Rate, plus a £12 monthly fee and a £7 fee per declined payment.

Monzo Business: best for sole traders

Monzo Business is built for applying without ever needing to call or visit a branch, though its rates are the highest in this guide, so it suits smaller, short term borrowing rather than a primary source of ongoing finance.

• Sole traders can apply for an overdraft up to £3,000

• Sole traders are offered a representative rate of 39.0% EAR (variable), with some applicants offered 29.0% instead based on their credit score.

• Sole trader overdrafts are not charged any additional fees

• You can change your limit or cancel your overdraft any time

How do you choose between these business bank accounts for an overdraft?

Which of these accounts suits you best comes down to what you're optimising for, since no single one wins on rate, limit and speed all at once.

• If cost is your priority, the Co-operative Bank's 10.20% rate sits well below the 13% to 16% range most other high street banks in this guide publish.

• If you need a bigger limit than a typical high street overdraft, the Co-operative Bank (£250,000) goes further than most before you need a relationship manager or a bespoke facility.

• If speed matters more than rate, Lloyds Bank and Metro Bank both offer an instant decision through their app or online banking for eligible amounts.

• If you're a sole trader rather than a limited company, Monzo Business is your only option.

• Every account in this guide assumes you already hold, or are willing to open, a business current account with that specific bank, since none of them offer an overdraft on its own without one.

Which of these accounts is quickest to qualify for as a newer business?

• Metro Bank and Monzo Business publish the shortest qualifying periods of the accounts in this guide, though they measure different things.

• Metro Bank asks for at least 7 months of trading history for your business as a whole, regardless of how long you've banked with them, and caps lending to businesses with annual turnover under £40 million.

• Monzo Business asks companies to have held their Monzo account for at least 30 days, which is about your account history with Monzo rather than how long your business has traded overall.

• The other banks in this guide don't publish a minimum trading period, and assess it case by case as part of their credit check instead.

Get business finance with a bigger limit or clearer costs than a bank overdraft

A business overdraft is arranged directly with your own bank, not through a lender panel, so we can't apply for one on your behalf. If you'd like to weigh an overdraft against other options first, our guides on the pros and cons of a business overdraft and revolving credit facility vs business overdraft cover that in more depth. If you need a bigger limit, a fixed repayment schedule, or clearer pricing than a bank overdraft can offer, you can compare business loans and credit facilities from our panel of 130+ UK lenders in one application. Apply today to get started.