Interest rate cut NOT to be passed to SME's

[richardxjr]

Close Brothers board is meeting at the moment to consider whether to move ALL their factoring and Invoice Discounting clients FROM BoE tracker TO Libor tracker. The other banks are probably all doing the same as we speak.

Considering MUCH of their business is at 3% over BoE base, this is blatant profiteering.

So I take back much of what I said about this benefitting SME's.

[rich1231]

why cant this be mentioned in one of the other 20 threads on the subject

[richardxjr]

Because this is important to the economy. More important than the effect of a cut on an individual's mortgage rate, which is what everyone is obsessed with on the other threads.

[emicen]

Bet your arse it'll be reflected on my business' savings account's rate. It was already ~2% below base making it hardly worth having money in there now.

[JagLover]

If they pay for their finance at the Libor rate why shouldn't that be the basis?

[havoc]

rich1231 said:

why cant this be mentioned in one of the other 20 threads on the subject

Because this affects the thousands of small businesses that actually keep this country going?!?

(And no, there's no self-interest as I'm employed by a multi-national. I just see the inequity in that decision as the BoE act is intended to promote trade and the economy, NOT line the pockets of feckless middle-men!)

[rich1231]

havoc said:

rich1231 said:

why cant this be mentioned in one of the other 20 threads on the subject

Because this affects the thousands of small businesses that actually keep this country going?!?

(And no, there's no self-interest as I'm employed by a multi-national. I just see the inequity in that decision as the BoE act is intended to promote trade and the economy, NOT line the pockets of feckless middle-men!)

Jesus H they can still be discussed in the the other threads.

Yet another just adds to the mess on here.

[richardxjr]

JagLover said:

If they pay for their finance at the Libor rate why shouldn't that be the basis?

Because my agreement with them is for finance at x% over BoE base; now they think they can re-write that agreement without my, er, agreement.

They increased the 'x' percentage by a half point in July (before the BoE cut) to supposedly close some of the gap between BoE & Libor.

[rich1231]

richardxjr said:

JagLover said:

If they pay for their finance at the Libor rate why shouldn't that be the basis?

Because my agreement with them is for finance at x% over BoE base; now they think they can re-write that agreement without my, er, agreement.

They increased the 'x' percentage by a half point in July (before the BoE cut) to supposedly close some of the gap between BoE & Libor.

The agreement has a ref with regards to giving notice for changes in terms yes?

[richardxjr]

rich1231 said:

richardxjr said:

JagLover said:

If they pay for their finance at the Libor rate why shouldn't that be the basis?

Because my agreement with them is for finance at x% over BoE base; now they think they can re-write that agreement without my, er, agreement.

They increased the 'x' percentage by a half point in July (before the BoE cut) to supposedly close some of the gap between BoE & Libor.

The agreement has a ref with regards to giving notice for changes in terms yes?

I will review what I signed (a few years ago!) very carefully that's for sure!