Revolut business overdraft: what you need to know

Revolut’s business account is a popular option for businesses looking for a digital account to manage their finances. However, when it comes to managing cash flow or planning for unexpected bumps in the road, it’s not yet possible to get a Revolut business overdraft.

While Revolut offers a range of business banking services, credit facilities such as overdrafts and Revolut business loans are not available. Here we’ll dive into what Revolut does offer, how it compares to alternatives, and how you can manage your business finances effectively.

Does Revolut business offer overdrafts?

As of now, Revolut does not offer overdraft services for UK business accounts​​. Unlike traditional high street banks, where overdraft facilities are often a standard feature for business accounts, Revolut’s business customers must rely on maintaining a positive balance to cover expenses. If you attempt to make a payment exceeding your balance, it will simply be declined​.

However, it’s worth noting that Revolut recently acquired a UK banking licence, which may enable them to expand their product offerings, potentially including overdrafts in the future​. Currently, they offer some forms of credit, such as personal loans and "buy now, pay later" services, but these are mostly available to consumers in other countries, like Ireland, Poland, and Romania​.

It’s also worth noting that money held in Revolut Business accounts doesn’t generate interest unless you're eligible for Flexible Cash Funds accounts.

What happens if I go over my Revolut balance?

Given that Revolut doesn’t currently offer a business overdraft, going over your credit balance will most likely result in your payments simply being denied. Businesses using Revolut business accounts will therefore need to keep a closer eye on their cash flow in order to ensure that they have enough funds to meet their costs.

‍

{{business-funding-on-your-terms="/components"}}

‍

Alternatives to Revolut Business Overdrafts

If you need access to credit or a financial buffer, there are several alternative options to consider:

1. Short term business loans: While Revolut does not yet offer business loans, other digital lenders can offer a similar convenient, online credit experience via short term business loans.
   
   iwoca Flexi-Loans, for example, can provide finance up to £1,000,000 with flexible terms up to 60 months, designed to suit small businesses seeking growth capital or working capital. Applying takes just a few minutes and decisions in as little as 24 hours, with funds available to be paid into any business bank account.
   
   
2. Other digital banking platforms: Competitors like Starling Bank and Tide do offer business accounts with overdraft facilities. Starling, for instance, allows overdrafts of up to £50,000, depending on your credit score and business performance​. This could be a useful option if you need the flexibility to manage cash flow fluctuations.
   
   
3. Flexible credit lines: Some digital lenders provide revolving credit lines that can act like an overdraft but are separate from your current account. This gives you access to funds when you need them, with interest only paid on the amount you draw down.

Managing Revolut business finances without an overdraft

While an overdraft might seem like an essential tool for cash flow management, Revolut still provides a range of features that can help your business stay on top of its finances:

• Multi-currency accounts: Revolut allows you to hold and exchange money in over 30 currencies, with no hidden fees, which is particularly useful for businesses trading internationally​.
• Expense management: Revolut syncs with popular accounting tools like Xero and Sage, helping you track spending in real time​.
• Instant payments: You can make international payments faster, avoiding the delays common with traditional banks, which can help you better manage your cash flow.

Will Revolut introduce a business overdraft?

Revolut is expanding its services rapidly, and gaining a UK banking licence will likely allow it to offer a broader range of financial products. While they don’t provide overdrafts at the moment, there is potential for this to change in the future as they grow their capabilities​​. 

Keep your business moving with flexible finance

Although Revolut Business does not yet offer overdrafts, you still have access to a suite of financial tools that can help you manage your business operations effectively. 

For those in need of immediate credit or a buffer, iwoca offers a range of small business loans designed around the needs of SMEs

• Apply in minutes
• Borrow £1,000-£1,000,000
• Repay early with no extra fees
• Only pay interest on the amount you draw down

To find out more or see how much you could borrow, check out our small business loans calculator.

‍

Sources

• Revolut receives UK banking licence
• Does Revolut Business provide a credit or overdraft facility?
• Apply for a business overdraft

‍