Ltd Business Overdraft Increase
Discussion
Ltd has been trading 11 years and had a 5k overdraft facility from day one.
Past 6 months have been very tough with late paying clients. To help aid cashflow I've requested an increase to 10k OD.
Given our good history will Lloyds, I've been surprised by the hoops we've been asked to jump through.
In the past 2 weeks I've spent nearly 5 hours on the phone to them making the application.
I've now been told that all Directors will need to make a personal guarantee on the overdraft.
Just wondering if this is normal or they deem us a risk?
Past 6 months have been very tough with late paying clients. To help aid cashflow I've requested an increase to 10k OD.
Given our good history will Lloyds, I've been surprised by the hoops we've been asked to jump through.
In the past 2 weeks I've spent nearly 5 hours on the phone to them making the application.
I've now been told that all Directors will need to make a personal guarantee on the overdraft.
Just wondering if this is normal or they deem us a risk?
Banks don't support business ever especially with over drafts
If you have a good trading history get something like an Amex business card - much better credit and no directors guarantees needed normally
In context, I business bank with HSBC, company has good cash balance, 30+ staff etc - HSBC max lending was 20k without directors Guarantees. I have a rolling 200k credit with American Express with none
If you have a good trading history get something like an Amex business card - much better credit and no directors guarantees needed normally
In context, I business bank with HSBC, company has good cash balance, 30+ staff etc - HSBC max lending was 20k without directors Guarantees. I have a rolling 200k credit with American Express with none
andy_ran said:
Banks don't support business ever especially with over drafts
If you have a good trading history get something like an Amex business card - much better credit and no directors guarantees needed normally
In context, I business bank with HSBC, company has good cash balance, 30+ staff etc - HSBC max lending was 20k without directors Guarantees. I have a rolling 200k credit with American Express with none
Brilliant suggestion, thanks I shall investigate over the weekend.If you have a good trading history get something like an Amex business card - much better credit and no directors guarantees needed normally
In context, I business bank with HSBC, company has good cash balance, 30+ staff etc - HSBC max lending was 20k without directors Guarantees. I have a rolling 200k credit with American Express with none
sagarich said:
TownIdiot said:
Yes
Don't do it unless you are absolutely, positively sure it's a short term issue.
Thanks, I'm not overly confident that it is a short term issue. Good to know.Don't do it unless you are absolutely, positively sure it's a short term issue.
Apply for a Capital on Tap card. I wanted it to collect Avios BUT it took minutes to approve with a £35k limit. I had to give HSBC a guarantee for a £10k ‘business card’ that needs to be cleared each month. The app is easy somit can be used to pay invoices or transfer to your current account.
sagarich said:
Ltd has been trading 11 years and had a 5k overdraft facility from day one.
Past 6 months have been very tough with late paying clients. To help aid cashflow I've requested an increase to 10k OD.
Given our good history will Lloyds, I've been surprised by the hoops we've been asked to jump through.
In the past 2 weeks I've spent nearly 5 hours on the phone to them making the application.
I've now been told that all Directors will need to make a personal guarantee on the overdraft.
Just wondering if this is normal or they deem us a risk?
Can the Directors really not come up with £5000 to lend to the business?Past 6 months have been very tough with late paying clients. To help aid cashflow I've requested an increase to 10k OD.
Given our good history will Lloyds, I've been surprised by the hoops we've been asked to jump through.
In the past 2 weeks I've spent nearly 5 hours on the phone to them making the application.
I've now been told that all Directors will need to make a personal guarantee on the overdraft.
Just wondering if this is normal or they deem us a risk?
Ziplobb said:
Apply for a Capital on Tap card. I wanted it to collect Avios BUT it took minutes to approve with a £35k limit. I had to give HSBC a guarantee for a £10k ‘business card’ that needs to be cleared each month. The app is easy somit can be used to pay invoices or transfer to your current account.
I just went through this process too, mainly for Avios but also for the times when suppliers don't take AMEX.Simple process, account opened instantly.
rallye101 said:
AB said:
I just went through this process too, mainly for Avios but also for the times when suppliers don't take AMEX.
Simple process, account opened instantly.
This needs a personal guarantee!!!Simple process, account opened instantly.
sagarich said:
Thanks for all the responses.
PG and loaning 5k isn’t an issue for myself but is for the other Director.
Don’t really want to go into too much detail on public forum, but just looking at all options.
If you think the business can survive then would you consider lending the money yourself with a proper agreement?PG and loaning 5k isn’t an issue for myself but is for the other Director.
Don’t really want to go into too much detail on public forum, but just looking at all options.
It could give you a bit more control of the business as you navigate choppy waters.
Gassing Station | Business | Top of Page | What's New | My Stuff