Other borrowing on balance sheet

[Zoon]

We have been approached by a potential customer and have checked their latest accounts and they have significant overdraft and loan debt but also another section listed under other borrowing.

Does anyone know what this could be attributed to? Given that it appears to be neither a loan or overdraft.

[Zoon]

Thanks for the replies, there is a charge on all monies listed from the bank but that has been there a few years.
The worrying thing is there is £70k listed in other borrowing which wasn't in the previous years accounts and nothing mentioned in the account notes.

I think we will steer clear.

[Zoon]

PugwasHDJ80 said:

Zoon said:

Thanks for the replies, there is a charge on all monies listed from the bank but that has been there a few years.
The worrying thing is there is £70k listed in other borrowing which wasn't in the previous years accounts and nothing mentioned in the account notes.

I think we will steer clear.

Surely at worst you'd put them on Pro-Forma until you had something of a history with them? That would be better than turning them away wouldn't it?

Yes just to give a bit of background, pro-forma was suggested but they rejected that and seemed very keen for a full credit account from the outset which is what worried me.