Helping Cash Flow ( of the banks)

[puppet]

I had a letter today offering an overdraft for the business. The bank has kindly removed any upfront arrangement fees.
Simple to apply, fast too with an instant decision and immediate access.
It states I could have up to £20,000 as an existing customer but the small print says this is inclusive of existing borrowing.
Up to £25000 unsecured at 10.31% EAR. Either a fee of £10 monthly up to 1.75% of the limit annually as well.

Seems a pretty steep interest rate as I am sure they will ask for some security - there is a warning your home could be repossessed later in the offer.
Is this really helpful for a business although some may be desperate

 

[Hindsight]

I had a letter today offering an overdraft for the business. The bank has kindly removed any upfront arrangement fees.
Simple to apply, fast too with an instant decision and immediate access.
It states I could have up to £20,000 as an existing customer but the small print says this is inclusive of existing borrowing.
Up to £25000 unsecured at 10.31% EAR. Either a fee of £10 monthly up to 1.75% of the limit annually as well.

Seems a pretty steep interest rate as I am sure they will ask for some security - there is a warning your home could be repossessed later in the offer.
Is this really helpful for a business although some may be desperate

Rishi Sunak's idea of support to small business people during Covid. He will be at the 5pm lectern smoothly telling you in his best head boy style how he is helping, really!

 

[renewablejohn]

Thought the mortgage break for 3 months was automatic. Turns out you have to apply for it and if you meet the criteria you might be offered one two or three months. Despite the interest rate going down in March my mortgage lender has said my tracker mortgage will go down as at April 1st but direct debit not reduced until 1st June. Yet another con by the banks.

 

[Steevo]

Or they could wait til Monday and apply for an up to £50k bounce back loan with zero fees and zero interest for 12 months.......government backed with no security required.

 

[Bullring]

Or they could wait til Monday and apply for an up to £50k bounce back loan with zero fees and zero interest for 12 months.......government backed with no security required.

They have not actually said what the interest rate will be on the loan after 12 months though, got to be paid back within 6 years. Some people could be in for a shock once they have it and find out the interest rate.

 

[livestock 1]

We’ve been discussing this today. Is there any advantages for going for this?

 

[milkloss]

We’ve been discussing this today. Is there any advantages for going for this?

I had been wondering too. Might be a case of take what you can because it could be that loan books will slam firmly shut soon.

 

[livestock 1]

I had been wondering too. Might be a case of take what you can because it could be that loan books will slam firmly shut soon.

That’s what I’m wondering and you have answered it for me. It depends on what happens next. Would provide breathing space if nothing else.

 

[cattleman123]

Could one not use the Bounceback loan as a form of borrowing free money at least for the 1st 12mths...reduce the o/d then pay it back...

 

[livestock 1]

Could one not use the Bounceback loan as a form of borrowing free money at least for the 1st 12mths...reduce the o/d then pay it back...

How much can you borrow on bounce back?

 

[cattleman123]

How much can you borrow on bounce back?

Up to 50k it says..

 

[DrWazzock]

We had this letter. Over 10% for an overdraft while they just cut my savings account to 0.7.%.
Utter strokers.

 

[livestock 1]

We had this letter. Over 10% for an overdraft while they just cut my savings account to 0.7.%.
Utter strokers.

Are you allowed to pay it back without fees within the interest free period?

 

[cattleman123]

Are you allowed to pay it back without fees within the interest free period?

That I cannot answer...would they refuse if you offered it back...I expect not

 

[livestock 1]

That I cannot answer...would they refuse if you offered it back...I expect not

Probably not but there could be an early payback fee which some loans have

 

[Sonoftheheir]

Bounce back loan sounds promising, but the devil will be in the detail (interest rate!)

 

[cattleman123]

Bounce back loan sounds promising, but the devil will be in the detail (interest rate!)

Did I here the chancellor say the remaining years would be at a very low interest rate,they are governmentbacked remember to help get things going again...possible a 1to2 %discount to normal...…looks to me for someone who has a structured business plan a bargin….use there money not yours