I would be interested to know the opinions of the tradesman on here regarding the current bank bashing over small business lending. I had my own business for 30 years before recently retiring and never had any loan other than a small overdraft facility to cover cash flow. Any investment (and this was considerable as my business was in audio visual hire, and I had to keep up with advancing technology) was financed from earnings. Almost all business's that I have been involved with did the same, most of those who borrowed to invest went bust. I believe that bank loans are down because many small business's do not want to be committed to loans, and banks are concerned that those who ask for loans are more likely to be non-viable concerns.
Bank Lending
- Thread starter maltaron
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about a year ago when cash flow was tight there where many stories of banks causing firms to go under
instead off easing the situation by say increasing borrowing conditions by say 10 to 20 percent for a few months
they where sending out letters telling buisnesses they where reducing there borrowing facility by any where from 10 to 80 percent with a few weeks notice
instead off leaving the status quo they re-assesed the amount off risk to each buisness and lowerd the overdraught accordingly without any regards to the fact that nothing had changed on the customers side to cause the problem
instead off easing the situation by say increasing borrowing conditions by say 10 to 20 percent for a few months
they where sending out letters telling buisnesses they where reducing there borrowing facility by any where from 10 to 80 percent with a few weeks notice
instead off leaving the status quo they re-assesed the amount off risk to each buisness and lowerd the overdraught accordingly without any regards to the fact that nothing had changed on the customers side to cause the problem
We're been held to ransom by our bank and it's a real kick in the pants!
We borrowed 50% for a project of 4 houses. Got 3 up and last one to 2nd fix. Needed £25k to complete - bank wouldn't lend!
Rented out 3 properties clearing £500/mth for 18mths. The bank sees this and decides to take it all from us due to us now being 'high risk'. Charged us an extra £8000 (2%) and £1000 for a new survey, which they tell us will happen every year!
We're now break even and this month (due to the bank forcing us to erect for sale boards so we lost 2 tenants) we were overdrawn with no overdraft as the bank withdrew it last month!
The properties were originally valued prior to completion at £245,000 each. We still have had no interest at £199,950.
Two properties are link detached, meaning they share the garage wall. The surveyor valued these £25k cheaper each than the detached with no sharing wall knocking a further £50k from original 50% which is now closer to 65% to the bank 35% to us.
I've heard this happen on several separate accounts now.
If they had just left us alone then we could ride out until the market picks up we'd have been fine.
Thank you HSBC and your £6b profits!!
We borrowed 50% for a project of 4 houses. Got 3 up and last one to 2nd fix. Needed £25k to complete - bank wouldn't lend!
Rented out 3 properties clearing £500/mth for 18mths. The bank sees this and decides to take it all from us due to us now being 'high risk'. Charged us an extra £8000 (2%) and £1000 for a new survey, which they tell us will happen every year!
We're now break even and this month (due to the bank forcing us to erect for sale boards so we lost 2 tenants) we were overdrawn with no overdraft as the bank withdrew it last month!
The properties were originally valued prior to completion at £245,000 each. We still have had no interest at £199,950.
Two properties are link detached, meaning they share the garage wall. The surveyor valued these £25k cheaper each than the detached with no sharing wall knocking a further £50k from original 50% which is now closer to 65% to the bank 35% to us.
I've heard this happen on several separate accounts now.
If they had just left us alone then we could ride out until the market picks up we'd have been fine.
Thank you HSBC and your £6b profits!!
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Stuff the banks and go for bankruptcy? How about all the other small businesses you owe money? Stuff them too?
Great advice - not!
Great advice - not!
Not sure what that has to do with it?
In my (human being) opinion going bankrupt just to stuff the banks is the worst medicine of all - for you not only not stuff the banks, you mostly only stuff other small businesses who are in the exact same boat as you are.
Human decency, Lady Foreigner or not
In my (human being) opinion going bankrupt just to stuff the banks is the worst medicine of all - for you not only not stuff the banks, you mostly only stuff other small businesses who are in the exact same boat as you are.
Human decency, Lady Foreigner or not
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OK Nige
Is Britain still in a post-Thatcherite state after 12 years of Liebour rule ?
If so., why is that ?
Could it be that they also recognised it was the best option ?
Is Britain still in a post-Thatcherite state after 12 years of Liebour rule ?
If so., why is that ?
Could it be that they also recognised it was the best option ?
Because Blair hadn`t got the balls to actually create a New Labour - yes, he fooled me 
. Thatcher did such a good job stitching up the corpse of declining britain that most people thought it was smiling @ them , as they filed past . Politicians tell us what the Best Option is - and the general public are so apathetic they don`t care as long as they are all right jack. Bankruptcy - it`s the new prosperity . We are in a Post second world war state - skint and in debt, even after paying off lend lease. Thatcherism was just a 3 card trick that kept the country amused for a decade .
. Thatcher did such a good job stitching up the corpse of declining britain that most people thought it was smiling @ them , as they filed past . Politicians tell us what the Best Option is - and the general public are so apathetic they don`t care as long as they are all right jack. Bankruptcy - it`s the new prosperity . We are in a Post second world war state - skint and in debt, even after paying off lend lease. Thatcherism was just a 3 card trick that kept the country amused for a decade .Irony
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Irony
...followed no doubt by sarcasm, hyperbole, alliteration............
......... and to cap it all
The Spanish Inquisition!!!!!!!!!!!!!!!!!
He obviously has no mercy and knows what he wants.
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To me (an old git) Politics goes in predictable cycles...
2 or 3 terms of a BIG spending Labour government, who bankrupt the country... Depression follows... Recession follows... Election looms
Following Election we get -
2 or 3 terms of a Tory government who impose cuts (always unpopular) to pay off what labour have "borrowed". Said cuts usually result in massive unrest, organised by the great unwashed whose nice little earner has been "cut". Middle England although much better off now national debt has been paid off panics.... election looms....
Back to Labour....
Cycle repeats endlessly....
However as a business chap of over 30 years I know which I prefer
edit due to spelling (I blame the country`s terrible education policy)
2 or 3 terms of a BIG spending Labour government, who bankrupt the country... Depression follows... Recession follows... Election looms
Following Election we get -
2 or 3 terms of a Tory government who impose cuts (always unpopular) to pay off what labour have "borrowed". Said cuts usually result in massive unrest, organised by the great unwashed whose nice little earner has been "cut". Middle England although much better off now national debt has been paid off panics.... election looms....
Back to Labour....
Cycle repeats endlessly....
However as a business chap of over 30 years I know which I prefer
edit due to spelling (I blame the country`s terrible education policy)
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