How are the banks treating you at the moment ?
Discussion
My construction business has an unsecured overdraft which is regularly used.
As the construction industry has apparently become 'high risk' over the past few months my bank have decided that they will not renew the facility and want us to take out a 10 year loan at 9.9%.
With interest rates as they are, I've tried to renegotiate but they won't budge. It looks as though they've got me over a barrel.
Is anyone else experiencing the same thing?
As the construction industry has apparently become 'high risk' over the past few months my bank have decided that they will not renew the facility and want us to take out a 10 year loan at 9.9%.
With interest rates as they are, I've tried to renegotiate but they won't budge. It looks as though they've got me over a barrel.
Is anyone else experiencing the same thing?
Qcarchoo said:
My construction business has an unsecured overdraft which is regularly used.
As the construction industry has apparently become 'high risk' over the past few months my bank have decided that they will not renew the facility and want us to take out a 10 year loan at 9.9%.
With interest rates as they are, I've tried to renegotiate but they won't budge. It looks as though they've got me over a barrel.
Is anyone else experiencing the same thing?
which bank is it?As the construction industry has apparently become 'high risk' over the past few months my bank have decided that they will not renew the facility and want us to take out a 10 year loan at 9.9%.
With interest rates as they are, I've tried to renegotiate but they won't budge. It looks as though they've got me over a barrel.
Is anyone else experiencing the same thing?
Qcarchoo said:
Nat West
I'd suggest taking some advice then. The banks that have been bailed out (including Nat West) have been told that they should be supporting small businesses. Try Federation of Small Business http://www.fsb.org.uk/default.asp?reference=209062... and/or British Chamber of Commerce http://www.britishchambers.org.uk/ and see if they can help.
Qcarchoo said:
Thanks for the advice. What gets me is the fact that a few years ago they were pestering me to increase the overdraft when I didn't need to.I guess that's banking.
is it amy wonder banking has become the paedophile of the business world in terms of public hatred? At the other end I hope people remember those who helped and those who played their own game.
richardxjr said:
Lloyds are actually treating us better!
I have been with Lloyds for more than 30 years whilst having other accounts with RBS, good way to check service and rates, Lloyds just lowered their credit interest rates on current accounts to 0.01% and their savings, business rates, are awful now. Best rate offered 2.68% on treasury deposit sterling so switch to RBS as they offered 3.57% and on eurozone similar, given that euro base is higher than UK now I think we are treated pretty poorly. One of my friends in NL has a deposit rate of 4.3% on his euro account! I agree with the post that they, the banks, have been bailed out to help businesses but are being very picky to say the least
henna777 said:
richardxjr said:
Lloyds are actually treating us better!
I have been with Lloyds for more than 30 years whilst having other accounts with RBS, good way to check service and rates, Lloyds just lowered their credit interest rates on current accounts to 0.01% and their savings, business rates, are awful now. Best rate offered 2.68% on treasury deposit sterling so switch to RBS as they offered 3.57% and on eurozone similar, given that euro base is higher than UK now I think we are treated pretty poorly. One of my friends in NL has a deposit rate of 4.3% on his euro account! I agree with the post that they, the banks, have been bailed out to help businesses but are being very picky to say the least
coyft said:
They only have you over a barrel, if your assets exceed your liabilities.
If you own a Limited Company and the overdraft is greater than the assets
of the company, then it is you, that have your bank over a barrel.
Haha thats a good point. Ultimately as you are all probably aware an Overdraft is a repayable on demand facility. And Whereas in boom times banks were a bit more liberal with people who were late payers or were operating hardcore overdrafts (ones that never return to credit). However credit control is tightening dramatically so if you aren't crediting your account with funds, missing payments or are operating a hardcore overdraft the banks are much more likely to get heavy. Much more so than 18 months ago.If you own a Limited Company and the overdraft is greater than the assets
of the company, then it is you, that have your bank over a barrel.
The reference to Natwest is particularly poignant. They seem to offer large overdrafts, steadily increase them, then when people have used them try and persuade them to take a loan to pay it off. Which isn't necissarily bad advice but the whole situation could have been avoided.
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