Business Overdraft Calculator

How Our Business Overdraft Calculator Works

This tool is designed to give you a clear estimate of your potential repayments and total interest, so you can improve your cash flow management with confidence. Your final interest rate is determined by a lender after they have had a chance to understand your business's monthly turnover and unique financial health. Good banking business practices can improve your chances.

Repayment Estimator Tips

• Enter your desired overdraft limit for a realistic cost estimate.
• Adjust the interest rate to see how different overdraft rates impact payments.
• Review the total interest payable to understand the full cost over time.

Guide to Business Loans and Overdrafts

What is an Overdraft?

A business overdraft is a flexible credit line linked to your everyday business account. Unlike standard loans where you receive a lump sum, an overdraft gives you access to a reserve of funds you can draw from as needed, up to an approved limit. You are only charged interest on the money you are actually using,  making it an efficient tool for managing the natural ups and downs of your finances.

Common Uses for an Overdraft

Business owners use overdrafts to maintain momentum and seize opportunities. Common uses fall into two key areas:

• Managing Daily Operations:  Excellent for payroll coverage or making timely supplier payments while waiting for your own client invoices to be paid. It acts as a bridge during temporary cash shortfalls, ensuring your business operations run smoothly.

• Seizing Growth Opportunities:  Purchase urgent stock to meet a large order or take advantage of a supplier discount. This quick funding means you do not have to miss out on chances to grow your business.

The Business Transaction Approval Process

We believe in transparency. Here is a clear walkthrough of our approval process, so you know what to expect at every stage.

1. The Initial Soft Credit Check:  You fill out our simple form with basic details about your business and how much you need. This gives us the initial information to see which business lenders could be a potential fit. This is not a formal application and will not negatively impact your credit score.
2. Our Secure LendIQ Technology Analysis:  Our LendIQ technology securely analyses your business's data to understand your cash flow. This allows us to accurately determine your borrowing limits and helps our lender matching process find a provider who is most likely to grant approval.
3. The Match and The Call:  Based on the analysis, our system identifies the single best lender for your needs. A member of our team will then call you to discuss the specific overdraft options available, including the rate, limit, and any potential establishment fee or other overdraft fees. There is no obligation to proceed.
4. Lender Review and Funding:  If you choose to proceed, we submit your application to the matched lender for final review. Upon approval, the overdraft is set up with your bank, and you can access the funds, often in as little as a few hours.