Banks moving from base to LIBOR

[jamesuk28]

Just had a very interesting conversation with one of my business partners. It seems our Bank wish to recalculate all our business loans, OD's and finance (I assume when they are due for renewal)on the LIBOR rate as oppose to calculating on Base rate. wkers.

Anybody else had this yet?

[edb49]

I've heard of others having this, and it is not surprising considering the differential in the two.

[Horse_Apple]

jamesuk28 said:

Just had a very interesting conversation with one of my business partners. It seems our Bank wish to recalculate all our business loans, OD's and finance (I assume when they are due for renewal)on the LIBOR rate as oppose to calculating on Base rate. wkers.

Anybody else had this yet?

And if everyone were able to tell them all to bugger off then LIBOR wouldn't be staying at such a premium.

Cake and eating it spring to mind.

[richardxjr]

Yes, I have reported previously (within an hour of the base rate change) that Close Brothers have done this too, certainly for all of it's invoice discounting and factoring clients.

OK not a Big 4 bank, but fairly big in it's market I think.

I managed to get them to reduce their margin to us though.

[spikeyhead]

If only they'd also link their savings rates to LIBOR.