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Business Overdraft & Credit Facilities
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Start Funding SearchMoney Pilot helps businesses access revolving credit and overdraft facilities that adjust to cash-flow needs.
We secure competitive rates and instant approvals by comparing all our available and applicable UK lenders.
Complete a fast but in-depth overview of your finance requirements to allow our powerful matching engine to source the right lenders for you.
Engage directly with lenders in real-time, with our friendly advisors always on hand to guide you through every step of the funding journey.
Track your enquiry in real-time and seamlessly move to application— all in one place—getting you to your funds faster and with less hassle.
Money Pilot pairs businesses with flexible overdraft providers that stabilise cash flow, not complicate it. We clarify pricing and limits, accelerate approvals, and keep terms transparent.
You get a reliable safety net that responds to seasonality and growth.
Access rapid, flexible funding solutions tailored for immediate business needs and cash flow management:
✅ What is a business overdraft and how do credit facilities work for UK businesses?
A business overdraft is a flexible credit facility attached to a business current account, allowing the business to draw funds beyond its available balance up to an agreed limit. Interest is charged only on the amount overdrawn at any time. Business credit facilities also include revolving credit lines, which operate similarly but independently of the main bank account. Money Pilot compares business overdraft and credit facilities from specialist UK providers — FCA regulated (FRN: 968705), zero broker fees.
Business overdrafts and revolving credit facilities are the most flexible forms of business finance available — draw down when needed, repay when cash flow allows, and redraw again without a new application. Unlike a fixed-term business loan, a credit facility does not require the business to commit to a fixed repayment schedule, making it ideal for managing variable and unpredictable cash flow requirements.
Bank of England held base rate at 4.25% in June 2026 — waiting for inflation to cool.
73% of UK SMEs expect to grow in the next 12 months — confidence remains strong.
Money Pilot compares business overdraft alternatives and revolving credit facilities from specialist UK lenders at zero broker fees. FCA regulated (FRN: 968705).
Business overdraft and credit facility providers assess the business's cash flow management, trading performance, and ability to manage a revolving credit obligation responsibly. Understanding their criteria helps you apply to the right provider and secure the largest available limit.
Key assessment criteria for business credit facilities:
Business overdraft and revolving credit facilities provide flexible working capital — draw when needed, repay when cash allows, redraw again. Interest charged only on the amount used at any time.
These four business situations show where a revolving credit facility or overdraft alternative delivers better outcomes than a fixed-term business loan, and why access to flexible credit is a core component of sound SME financial management.
The most common use case for a business credit facility is bridging the gap between paying suppliers and receiving customer payment. A business that pays suppliers on 30-day terms but offers customers 60-day payment terms has a 30-day working capital gap every month. A revolving credit facility bridges this gap automatically — drawn when needed to pay suppliers and repaid when customers settle their invoices. Unlike a fixed loan, the facility scales with the business's trading volume and costs nothing when not in use.
Every business faces unexpected costs — a piece of equipment breaks down, a key supplier requires early payment, or an insurance excess becomes due unexpectedly. Without a credit facility in place, the business must either dip into cash reserves intended for other purposes or delay paying other commitments. A revolving credit facility provides instant access to funds for unexpected costs without a new application, keeping operations running smoothly and cash reserves intact for planned purposes.
Seasonal businesses — hospitality, construction, retail, and agriculture — face periods where costs are high but revenue has not yet arrived. A revolving credit facility or business overdraft funds the cost of preparing for the seasonal peak — stocking up, hiring seasonal staff, and meeting supplier commitments — and is repaid from the seasonal revenue when it arrives. The facility costs nothing outside the peak period and does not require a new application each season.
Many UK SMEs rely on their bank overdraft as a default working capital tool — often at rates of 15% to 25% EAR and with the risk that the bank can withdraw the facility with limited notice. Specialist revolving credit facility providers offer committed facilities at more competitive rates, with greater certainty of availability and without the bank's ability to withdraw the facility at short notice. Money Pilot compares specialist revolving credit facilities alongside invoice finance and short term business finance options.
Bank of England held base rate at 4.25% in June 2026 — waiting for inflation to cool.
73% of UK SMEs expect to grow in the next 12 months — confidence remains strong.
A business overdraft is a feature of the business's bank current account — the bank permits the account to go negative up to an agreed limit. It is typically an uncommitted facility that can be reduced or withdrawn at the bank's discretion. A revolving credit facility is a separate, committed lending product from a specialist provider — the business draws funds into its account when needed and repays them when cash flow allows. Revolving credit facilities are more stable, often more competitive, and cannot be withdrawn at short notice during the agreed term.
Business overdraft and revolving credit facility limits range from £5,000 for small businesses up to £5 million or more for larger SMEs. The limit is typically set as a multiple of average monthly turnover — most providers offer between 1 and 3 months' average revenue as the maximum facility size. Some invoice-backed facilities grow automatically as the business's debtor book grows. Money Pilot identifies the provider offering the highest limit for your specific business profile and turnover level.
Yes — specialist revolving credit facility providers assess the business's bank statement performance and revenue consistency as primary underwriting criteria, with credit history as one factor among several. A business that demonstrates consistent monthly revenue and responsible bank account management can access a credit facility even with historical adverse credit. The rate will be higher to reflect the additional risk. Money Pilot identifies specialist providers with appetite for adverse credit business credit facility applications.
Specialist revolving credit facility providers typically provide an in-principle decision within 24 hours of receiving bank statements and can activate the facility within 48 to 72 hours of approval. Bank overdrafts take longer to arrange through the business's existing bank, often requiring a branch appointment and several days of processing. For businesses needing immediate flexible access to working capital, specialist providers are typically faster than the business's own bank.
Revolving credit facility costs consist of two elements — a facility fee (typically 1 to 3% per annum of the total facility limit, charged whether or not the facility is used) and a draw-down rate (typically 6 to 20% per annum, charged only on the amount drawn at any time). Some providers charge only on drawn amounts with no facility fee. The total cost for a business that draws the full facility for 6 months and repays is significantly lower than an equivalent fixed-term loan at the same rate because the interest is only charged during the drawn period.
Money Pilot compares business overdraft alternatives and revolving credit facilities from specialist UK providers — matching your monthly turnover, cash flow profile, and credit history to the most appropriate facility and provider. We also compare invoice finance for B2B businesses and short term business loans for larger one-off requirements. Zero broker fees. FCA regulated (FRN: 968705). Call 020 4634 8617.
Disclosure: Money Pilot Ltd (FRN: 968705) is an Appointed Representative of Yellow Stone Finance Group Ltd which is authorised and regulated by the Financial Conduct Authority (FRN: 814533). Yellow Stone Finance Group Ltd is a credit broker not a lender. Money Pilot Ltd is Registered in England and Wales No: 13621432. You should always make sure you are able to afford any repayments as late or missed payments can affect your credit rating and access to future finance.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.