Business loans and overdrafts
Achieve your business goals and feel in control.
To be eligible to apply you must be 18+, a sole trader, and have a Monzo Business account. Ts&Cs apply.
Loans for businesses
Eligible sole traders can get a loan up to £25,000. We can only offer you one loan across both your personal and business accounts. We don’t offer loans to limited companies.
Seeing if you’re eligible won’t leave a mark on your credit file. There are no lengthy forms to fill and no charges for paying us back early.
Our Representative APR for loans of more than £10,000 and up to £25,000 is 21.1% APR. For loans up to £10,000 it's 34.5% APR. The loan terms vary depending on the amount you borrow.
21.1% representative APR is based on borrowing £18,000 over 48 months, at a simple annual interest rate of 19.3% (fixed). The total amount you'll repay is £25,950.11.
34.5% representative APR is based on borrowing £5,000 over 30 months, at a simple annual interest rate of 30.1% (fixed). The total amount you'll repay is £7,155.76.
You need to be 18+ and must have a business account to apply. Ts&Cs apply.
Overdrafts for businesses
Arranged overdrafts can be ideal if you need to borrow a little extra money to tide you over every now and then.
Overdrafts are designed for short term borrowing, and they’ll cost you less if you pay them back quickly. Eligible sole traders could get an overdraft up to £2,000.
How does our overdraft compare?
Our Representative EAR is 39.0% (variable). Monzo does not apply charges for using your overdraft. The interest on your overdraft will be calculated daily on the overdrawn balance and added monthly. We offer three different rates of interest: 19.0%, 29.0%, or 39.0%. Most customers are offered 39.0%.
You need to be 18+ to apply. Ts&Cs apply.
Do you offer loans for Limited companies?
If you are a director of a Limited company, you can check if you're eligible to apply for a Monzo business loan in the app. The availability of these loans is subject to status, terms and conditions.
Where we can’t help you with a loan, we've teamed up with FundingXchange and iwoca to find the right funding for your business goals.
While we earn a commission from these partnerships, this doesn't affect your application process with the lenders.
Our Representative APR for loans between £1,000 and £25,000 is 29.9% APR. The loan repayment terms vary depending on the amount you borrow. 29.9% representative APR is based on borrowing £6,000 over 18 months, at a simple annual interest rate of 26.5% (fixed). The total amount you'll repay is £7,333.88.
Limited Companies only. Must have a Business Account for at least 30 days and provide a personal guarantee. Ts&Cs apply.
Do you offer overdrafts for limited companies?
If you're a limited company director, you can check overdraft eligibility in the Monzo app. Overdrafts can provide a short-term cash flow buffer for things like late payments or seasonal dips, and cost less when repaid quickly. Availability is subject to status, terms, and conditions.
Approved companies can get an overdraft from £500 to £5,000. We can only offer one overdraft per company, and only directors with admin access to the business account are eligible to apply. To complete the application, the applying director will need to provide a personal guarantee.
We’ll complete a hard search on your company, which will leave a record on its credit file, and a soft search on the applying director’s personal credit file, which won’t affect their credit score. Personal searches are limited to the applying director.
Representative EAR 35.9% (variable)
Effective annual rate (EAR) is the rate of interest you’ll pay when you use your overdraft. It doesn't include the annual arrangement fee we charge to take out the overdraft or renew it. Interest is calculated daily on your overdrawn balance and charged monthly. We offer three rates (variable): 19.0%, 29.0%, or 35.9%, with most customers receiving 35.9%.
Monzo charges an annual arrangement fee; £500–£1,000 has a fee of £20, £1,001–£2,500 is £50, and £2,501–£5,000 is £100.
Renewing your overdraft
After a year we’ll check in to see if you still want your overdraft. If you do, we’ll ask you to pay another annual fee (and each year you choose to keep it), and complete another hard search on your company’s credit file to check you’re still eligible. If you don’t, you’ll need to repay your overdraft.
Limited companies only. To be eligible you must be 18+. Ts&Cs apply.