An arranged overdraft request is when you approach us in advance to set up an appropriate overdraft limit, for a period of up to 12 months.
An arrangement fee applies when we agree to an arranged overdraft. The facility is normally reviewed annually and, if renewed, a renewal fee will be charged.
Interest rates on arranged overdrafts will be individually agreed with you and the rate added to the Bank of England Base Rate, which is subject to change. If the Bank of England Base Rate falls below zero, we will treat it as zero.
The interest rate applied to your overdraft will be re-assessed at each review of your overdraft and so this may change, although we’ll give you notice of this.
For details of our fees and charges, please see our Business Banking Price List.
Unarranged Overdraft
An unarranged overdraft request is when you do not contact us in advance, and you make payments from your account which would, if processed by us, cause your account to go overdrawn or over an existing arranged overdraft limit. We will always consider an unarranged request and will try to be supportive. However, if we are not able to agree to unarranged overdraft and a payment is returned, we may charge you a fee for returning the payment, in line with our Business Banking Price List.
Where you have no existing arranged overdraft limit, we’ll charge interest at our Business Standard Debit Interest Rate of 19.50% on all debit balances. This is a higher interest rate than an arranged overdraft.
Where you have an existing arranged overdraft limit and go over this limit, we’ll charge interest at the rate we have agreed with you on balances up to your facility limit, and will charge our Business Standard Debit Interest Rate of 19.5% on any balance over your arranged limit.
Continually going into an unarranged overdraft or over your arranged overdraft limit could impact your credit rating and ability to obtain finance with HSBC or other lenders.
If you anticipate you may want to make frequent unarranged overdraft requests, it may be cheaper for you to apply in advance for an arranged overdraft. Lending is subject to credit status. Terms and conditions apply.
