The purpose of an overdraft is to allow the account holder access to funds beyond what they hold in their account, up to a specified limit.  It is essentially a line of credit that you prearrange with the Bank for use at those times when you need extra cash.

An overdraft is used for Working Capital purposes only and can be considerably cheaper and more flexible than conventional bank loans.  Working capital is the funds available for conducting the day-to-day operating of the business, for example salaries, stock, fuel, etc.  It ensures you have enough cash to pay your debts and expenses as they fall due.

Business overdrafts can be unsecured for up to £5,000. Security will be required for any applications over this amount.

Agriculture Lending

Customers applying for a personal or commercial loan for the purpose of agricultural activities will receive a lower interest rate:

• Secured Loan: 4.5%
• Unsecured Loan: 5%

Bank of St Helena defines agriculture activity as the science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products.

Application Criteria

• A fully completed business loan application form and a signed account transfer form to cover the application fee.
• A Business Plan, covering a minimum period of three years.
• A Cash Flow forecast, projected for a minimum of three years.
• Balance Sheet projected for three year period.
• Trading, Profit and Loss or Income and Expenditure Account projected for the same period.
• For existing businesses, a copy of your most recent Year End Accounts inclusive of a Balance Sheet.

For more details on what is required for a business loan/overdraft application, please download the ‘Application Guide’ below.

Application Process

Upon receiving an application and all documentation required, an in depth analysis is undertaken on the business proposal. This process is likely to take 4-6 weeks (20-30 working days) depending on:

• The value of the application
• The details and accuracy of the information provided
• The security offered

Unsuccessful Applicants

A loan application may be declined for a variety of reasons. The Bank reserves the right to refuse or approve loans at its sole discretion, without the requirement to provide a reason for doing so.

Successful Applicants

A successful applicant will be notified by telephone, email or letter.

Administration Fees

If your application is successful, you are required to pay an administration fee to the Bank for work carried out on your application. See the table below for the relevant admin and cancellation fees. 

Relevant Terms and Conditions, Forms, Guides and Brochures