Getting a limited company overdraft

We decide if we can offer you an overdraft when you apply for one When you apply for a business overdraft, we take a look at the credit data for your business to help us decide whether we can lend to your business. This is known as a 'hard search' and will show up on your businesses credit report as a 'credit search'. This will impact the credit score of your business.

We also ask for a personal guarantee from the director applying for the overdraft. We'll look at the guarantor’s credit file to understand whether they can afford to repay the debt if the business can't. This is known as a 'soft search' and will show up on their credit report as a 'quotation search' and 'administration review'. Lenders can't see this information, so it won't affect the director’s chances of getting credit.

You can turn overdrafts on in the app If we can offer you an overdraft, you can find it in the app following these steps:

Limit increase When you’re choosing your limit please think carefully about what you need and can afford to repay.

Fees for using your overdraft We'll charge an annual fee when you enable a Business Overdraft, plus interest on any overdrawn balance. The EAR (effective annual rate) that we offer you will depend on your businesses credit score, and will be 19%, 29% or 35.9%. Learn more about fees.

When are fees charged? We'll take the annual fee from your Business Current account when you enable the overdraft. The fees for using your overdraft balance will come out of your account on the 1st of every month. We’ll apply the interest at midnight UTC on the day the payment settles. UTC stands for Coordinated Universal Time – which is the standard used to align time around the world. It’s the same as GMT (Greenwich Mean Time) but it ignores the clocks going forward in the UK every spring. You'll see these fees add up at the top of your Home tab, but you'll only be charged on the 1st of the next month.

You can have multiple arranged overdrafts with Monzo If you're eligible, we might offer you an arranged overdraft on your Business and Personal accounts.