How to ask your bank for a business overdraft increase (and what to say on the call)

The short version

Ring your bank early, ask for a specific number, and explain how the extra room comes back down. That’s most of it.

A bigger overdraft is one of the most common requests a business banker hears in October and November. Stock for the Christmas rush, wages over a shutdown, a big job that pays on 60-day terms. The owners who get a quick, clean answer tend to do the same few things on the call. This guide walks through them, with a script you can adapt.

Why ring now rather than in December?

Timing changes how the same request sounds.

Asked in mid-October, “We’d like to lift the limit by $40k from November to February to cover Christmas stock” sounds like a business that plans. Asked on 19 December, with wages due and the account already at the limit, the identical words sound like a business in trouble. The bank’s assessment may be the same either way, but the conversation is very different.

There’s also the calendar to think about:

Date	Why it matters for an overdraft call
Mid to late October	Good window to ring. July–September figures are fresh.
28 October 2026	Quarterly BAS for July–September due, unless a tax agent lodges it (concession to 25 November 2026)
November	Banks get busy with year-end requests. Assessments can slow.
Late December to mid-January	Many decision-makers are on leave. Don’t count on a quick answer.
28 February 2027	Quarterly BAS for October–December due. Often the point a seasonal limit needs to come back down.

BAS dates are from the ATO’s due dates page. If a due date falls on a weekend or public holiday, you have until the next business day.

A useful rule of thumb: ring four to eight weeks before you need the room. That leaves time for the assessment, for any paperwork, and, if the answer is no, for a plan B.

Temporary or permanent: which are you asking for?

Get this clear before you dial, because it shapes everything else.

• A temporary or seasonal increase. The limit goes up for a set period, then drops back. Suits Christmas stock, harvest, a one-off project, a shutdown. Some banks have a specific product for this; some limit how often you can use it in a year; some don’t offer it at all.
• A permanent limit change. The new limit stays. Suits a business that has genuinely grown and keeps bumping into the old ceiling every month.

Be honest with yourself about which one it is. If you’ve asked for a “temporary” lift three years running, the bank will notice. Telling them “the business has grown and the old limit no longer fits” is a stronger conversation.

It also helps to know what an overdraft is for. business.gov.au’s key financial terms describe it as letting a business withdraw more than the balance of its account. It’s built for short gaps that come back. If what you’re really funding is a vehicle, a fit-out or a two-year project, a term facility is usually the better ask, and saying so on the call shows you understand your own numbers.

What to have in front of you before you call

You don’t need a full application pack to make the first call. But having these on the desk makes you sound prepared and saves a second call:

• The number. The new limit, not “a bit more”. Round it sensibly.
• The purpose. One sentence. “Christmas stock and wages over the January shutdown.”
• The time frame. From when, to when.
• How it comes back down. Customer payments, seasonal sales, a contract milestone.
• Your latest figures. Recent BAS, a year-to-date profit and loss, and how the account has run over the last few months.
• A simple cash-flow forecast. Even a one-page month-by-month view showing the low point and the recovery.
• Anything awkward. ATO balance, a recent dip, a big customer that left. Better from you than found by them.

Your accountant or bookkeeper can usually pull the figures together quickly. Our questions for your accountant before a lender call list is a good checklist, and our page on describing turnover and bank statements covers how to put the numbers into words.

What to say: a script for the call

Ring your business banker if you have one. If not, the bank’s business lending line. Check your bank’s hours if you’re interstate, and allow for daylight saving; our best time to call planner does the maths for our line, and the same thinking applies to your bank’s.

“Hi, it’s Sam from Coastline Garden Supplies, account ending 4417. We’ve had an overdraft of $60k for two years. I’d like to ask about a temporary increase to $100k from mid-November to the end of February. It’s for Christmas stock and wages while we’re closed in early January. Sales over December normally bring the balance back under the old limit by February. Can you tell me what you’ll need from me, and roughly how long a decision takes?”

Illustrative example only.

That one paragraph covers who you are, what you have now, what you want, why, for how long, and how it comes back. Then it hands the bank the two questions that matter.

If you’re not sure how big the number should be, our page on how much to ask for and how to explain it helps you size it.

The questions to ask back

The call goes both ways. Before you hang up, ask:

1. What information do you need, and in what format? Banks that follow the 2025 Banking Code of Practice commit to explaining how to apply for a small business loan, including the information they require and how long a decision will take once they have it. Ask for both, plainly.
2. Is this a temporary increase or a limit change, and what’s the difference in fees? Establishment fees, line fees and any charges for the unused limit vary.
3. Will you do a credit check, and when?
4. Is there a review date? When will the bank look at the facility again, and what happens at the end of a temporary period?
5. Does anything change about security or guarantees? A larger limit can mean the bank wants more security or a director’s guarantee. Ask now, not at signing.
6. Who’s my contact, and when will I hear back? Get a name and a date.

Then send a short email confirming what you asked for and what they need. It gives you a record and stops things drifting into the Christmas rush.

Not keen on waiting on the bank’s timeline? See if you qualify for other options while you wait. It doesn’t touch your credit file to enquire.

What the bank is weighing up

Under the Banking Code, a subscribing bank considering a new loan or limit increase for a small business commits to exercising “the care and skill of a diligent and prudent banker”. In practice that means it looks at whether the business can carry and clear the bigger limit, based on what it knows about your financial position and how the account has been run.

That’s why account conduct matters so much. A facility that swings up and back down each month tells a good story. One that’s sat at the limit for six months, with dishonours along the way, tells a harder one. If yours is the second kind, say so on the call and explain what’s changed. The same Code paragraph also says the bank won’t ask a third party such as your accountant to certify that you can repay. It may still want your accountant’s figures, though.

A worked example

A landscaping supplies business in regional Victoria has run a $60k overdraft for two years. Each December it buys heavily for spring and summer, and each February the balance drifts back down. Last year the limit was tight by early December and the owner juggled supplier payments into January.

This year the owner rings the bank in the third week of October. They ask for a temporary lift to $100k from mid-November to the end of February, send the September BAS, a year-to-date P&L and a one-page forecast, and ask the six questions above. The bank asks for a debtor list and confirms the review date. Because the request is early, there’s still time to talk to another lender if the bank offers less than asked.

Illustrative example only.

If the bank says no, or offers less

It happens. Banks tighten policy, industries fall out of favour, and some businesses outgrow what their bank wants to lend. A few steps help:

• Ask for the general reason. The Banking Code says subscribing banks tell small business customers the general reason a loan isn’t approved, unless it’s reasonable not to. Our guide on asking your bank why it declined has the script.
• Don’t fire off applications everywhere. Several credit enquiries in a short period can make the next lender wary.
• Look at the shape of the gap. If it’s stock or wages, an unsecured line of credit sized on turnover may fit. If you own property, a secured option may give you more room. Our list of questions to ask a lender on the phone helps you compare.
• Keep a buffer. The Banking Code notes that for an overdraft or on-demand facility, a bank may not need to give notice when it requires repayment. Don’t build your whole season on a facility that could change.

If you think you were treated unfairly, raise it with the bank first. If that doesn’t resolve it, the Australian Financial Complaints Authority is free for small businesses.

Your bank isn’t the only number you can ring

A bigger overdraft is a sensible ask, and plenty of owners get it. But the busy season doesn’t wait for a bank’s assessment queue, and if the answer comes back short, you want another conversation already lined up.

That’s what our line is for. Ring 03 4059 1829 or start a 60-second enquiry and tell us the gap: how much, what it’s for, and when it comes back down. Exactly what you’d tell your bank. There’s no credit check when you first enquire, so it won’t add anything to your file while the bank’s decision is pending. We don’t pass your details around a pile of lenders, so your phone won’t light up with strangers. A real specialist looks at your situation, including any awkward bits, and calls you back. Please fill the form in accurately, with your real limit, turnover and timing, so we can match the right option the first time.

See if you qualify →