The Co-operative Bank’s Business Lending Products

For small business owners, accessing the right financial tools is crucial to managing cash flow, covering day-to-day expenses, and funding growth. The Co-operative Bank offers a range of business lending products tailored to meet these needs. From business credit cards to overdrafts and charge cards, these products reflect the bank's ethical values and commitment to supporting businesses.

The Co-operative Bank’s business credit card

The Co-operative Bank’s business credit card is handy for businesses needing flexibility and control over expenses. It allows you to spread the cost of purchases while benefiting from interest-free periods on repayments.

Key features:

• Interest-free purchases: Up to 56 days interest-free on purchases, provided the balance is paid in full by the due date.
• Credit limits: Ranges from £500 to £25,000, tailored to your business needs.
• Annual fee: £24 per card, making it a cost-effective option for managing expenses.
• Digital compatibility: Use with Apple Pay, Google Pay, and Samsung Wallet for secure, on-the-go transactions​.

The Co-operative Bank’s business charge card

The business charge card offers an alternative for businesses that prefer a short-term payment solution. Unlike a credit card, the full balance must be paid off each month, making it better suited for controlling costs without accruing long-term debt.

Key features:

• Interest-free period: Up to 48 days as long as the full balance is cleared monthly.
• Multiple cards: Issue cards to employees with pre-set limits for greater expense control.
• Fees: Free for the first six months, then £2 per card per month​.

The Co-operative Bank’s business overdraft

For businesses that need immediate access to funds for short-term costs, a business overdraft is a common option, though it comes with limitations. It allows businesses to borrow only what they need, reducing unnecessary interest costs.

Key features:

• Borrowing limits: Standard limits up to £250,000, with higher amounts available upon request.
• Interest charges: Pay interest only on the funds used. Rates are variable, calculated using the Bank of England base rate plus a margin.
• Flexibility: Suitable for managing unexpected bills or temporary cash flow shortages​.

How to choose the right product for your business

Selecting the right lending product depends on your business’s needs and financial habits. A credit card, for example, can be ideal for covering a bill in a pinch, but not suitable for, say, investing in new premises.

1. For day-to-day purchases: A business credit card is ideal for spreading costs and maintaining cash flow.
2. For controlled spending: A business charge card works well if you prefer to avoid carrying a balance and want to impose strict monthly limits.
3. For cash flow fluctuations: A business overdraft is suitable for managing unexpected expenses or seasonal revenue changes.

Long-term alternatives to The Co-operative Bank’s lending products

If you are looking to make larger or longer term investments in your business than a credit card or overdraft allow, iwoca is a leading UK provider of small business loans. With iwoca, you can borrow up to £1 million for up to 5 years. Any UK-based limited company can apply for an iwoca business loan, not just customers of The Co-operative Bank.

Whether you’re managing seasonal cash flow, covering unexpected costs, or looking to invest in growth, iwoca gives you the flexibility and control you need without the limitations of traditional lending products.

• Apply online in just a few minutes and get a decision in as little as 24 hours.
• Borrow £1,000 to £1,000,000 for up to five years - you can even repay early with no early repayment fees.

• If you’re not a Co-operative Bank customer, iwoca can help you access the funds you need for more ambitious projects with time frames that help you plan properly.
• Easily track your repayments, costs and payment schedule online. 

Find out how to apply for an iwoca loan and see how we can help support your business’s financial needs.