Business overdraft rates

tonytsdiver

Hi.I renewed my business overdraft last month with the HSBC. I was charged a £100 upfront fee and the interest rate will be 6 % above base rate. Anybody else out there paying a similar rate? Is this considered to be a decent deal in these difficult times? Can anyone point me towards a better business current account overdraft facility? Thanks. Tony.

ukbill69

You have a very good rate there, I thought mine was good at 9.9% over base.

The £100 is a fee that all banks charge as they dont make enough to provide the overdraft and costs them to setup the loan even when it comes from there own bank accounts. I managed to always get mine dropped to £50 per year. Pay the fee, I think that its worth it in this day and age as banks do not lend to anyone with business accounts.