I have just had a call from my bank who have refused to renew my overdraft facility which my business relies on at various times in the year. Is there an alternative way of financing my business as this will have serious impacts on our chances of staying in business?

"Sarah Howard" wrote in message
...

I have just had a call from my bank who have refused to renew my
overdraft facility which my business relies on at various times in the
year. Is there an alternative way of financing my business as this will
have serious impacts on our chances of staying in business?


1. Make sure you know precisely why your bank is declining to renew, and
thus how you will counter that when talking to others.

2. Ensure your business plan (both numbers and narrative) is bang
up-to-date and realistic in the context of current trading conditions. The
fact you only use the facility for parts of the year (presumably a seasonal
business?) may be a point worth emphasising.

3. Shop around the other banks, armed with the info from 1 and 2. Be
smiley and confident - like you're choosing a supplier, not begging.

4. Don't accept a deal unless the overdraft limit is a bit bigger than
you think you'll need.

5. When you get an offer, still try to haggle on terms (arrangement fees,
interest and normal a/c operating fees).

Good luck.

--
Martin

Hi Sarah,

Firstly, you need to understand why the bank has refused to renew the overdraft. There are some alternatives out there. If you have assets, they could be offered as security to raise a loan to inject cash into the business rather than using an overdraft.

Also if your business is owed money from trading you may well be able to raise cash against those debts via some form of factoring. This is where the lender advances you up to say 85% of your book debts at any one time. That way you get an immediate cash injection into your business and continued advances as and when each subsequent invoice is issued. If you have no assets then the latest Government scheme to support business - Enterprise Finance Guarantee (EFG) can be used to raise cashflow. If you have a pension, that pension could also be used to buy the building you are working from which may free any equity you have which you could use to work with. There are many methods of achieving business finance and an independent financial adviser specialising in commercial finance will be able to guide you efficiently through each one.

I hope this helps. MH

On Tue, 26 Jan 2010 10:27:07 +0000, Sarah Howard
wrote:


I have just had a call from my bank who have refused to renew my
overdraft facility which my business relies on at various times in the
year. Is there an alternative way of financing my business as this will
have serious impacts on our chances of staying in business?

Sarah

How much are you talking about and for how long?

Have you tried this website? I know people who have used this
successfully.

http://uk.zopa.com/ZopaWeb/

"Sarah Howard" wrote in message
...

I have just had a call from my bank who have refused to renew my
overdraft facility which my business relies on at various times in the
year. Is there an alternative way of financing my business as this will
have serious impacts on our chances of staying in business?




--
Sarah Howard

Had you paid yourself a few million in dividends in the past then you could
ask the Government to bail you out.

On Tue, 26 Jan 2010 10:27:07 +0000, Sarah Howard
wrote:


I have just had a call from my bank who have refused to renew my
overdraft facility which my business relies on at various times in the
year. Is there an alternative way of financing my business as this will
have serious impacts on our chances of staying in business?


After being nearly driven bust by a bank demanding, without good cause
or reason on my business's behalf, that their overdraft be repaid
immediately in 1986 I resolved never to have an overdraft again. At
that time the bank was in trouble with its South American debts. But
changes in bank manager, head office, economic climate - you name it
and some small business will go to the wall because something happens
that is nothing to do with them.

Beg, borrow (no, don't steal), get a formal set period loan, use
invoice factoring, credit cards, re-issue shares, negotiate with your
suppliers, negotiate with your customers.

You lose ownership of your business with an overdraft.


--
AnthonyL

First of all, sell surplus of stock
Encourage debtors to pay by giving them discounts(2%)
Window Dressing of your business
Improve your cash flow
Draft a new balance sheet to show your bank

Good Luck

__________________
Loan Facilities