Our business overdraft calculator can help you estimate the costs associated with using an overdraft facility for your business. It typically considers factors such as the overdraft amount, interest rate, and the duration of use.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
A business overdraft facility is a flexible borrowing arrangement that allows a business to withdraw more money than is available in its bank account, up to a pre-approved limit. It is a form of short-term credit designed to help businesses manage cash flow, cover unexpected expenses, or bridge gaps between income and expenses.
Pre-agreed Limit: The bank sets a maximum amount the business can overdraw.
Interest Charges: Interest is typically charged only on the amount overdrawn, not the full limit.
Fees: Some banks charge arrangement or renewal fees for maintaining the overdraft.
Repayment Flexibility: Funds can be repaid at any time, reducing interest costs.
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