Ltd Business Overdraft Increase

[sagarich]

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?

[sagarich]

TLDR - Directors personal guarantee on Ltd overdraft, is this normal?

[sagarich]

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.

[sagarich]

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.

[sagarich]

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.