• Welcome to the LegalBeagles Consumer and Legal Forum. Please register to get the most out of the forum. Registration is free and only needs a username and email address.
  • LegalBeagles® is a free forum, founded in May 2007, providing legal guidance and support to consumers and SME's across a range of legal areas.

    Please do not post your full name, reference numbers or any identifiable details on the forum.

Ltd Co been asked by Barclays to take out a loan for half overdraft amount

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Ltd Co been asked by Barclays to take out a loan for half overdraft amount

    A friend of mine, with a 33% interest in a ltd co went to see their Barclays bank manager yesterday.

    The manager was 'concerned' about the amount of bank charges on the account (there are thousands) & in a bid to reduce charges he suggested that the company...

    reduce their overdraft by 50% by taking out a barclays loan to cover it because apparently charges are tiered & the higher the overdraft limit, the higher the cost of charges etc....


    I was a bit suspicious when I heard this.....reducing liabilities (the overdraft) & increasing business for the bank (a new customer loan) sounds like a way for the manager to make it look like hes improving the banks business to me! I have asked about interest rates etc...the person doesnt know what theyll be!

    does anybody have any opinions or advice or comments which they can share with me on this please?
    :beagle:My threads :- UCA (Amex) : Moorcroft (Goldfish) : Cabot : Marlins : Shas v A&L & the world : Capital One : Direct Legal Collections...Egg, CO : Nationwide : Co-Op

  • #2
    Re: Ltd Co been asked by Barclays to take out a loan for half overdraft amount

    There is an interesting article that I have literally just spotted:
    SMEs hit by stealth bank charges

    Comment


    • #3
      Re: Ltd Co been asked by Barclays to take out a loan for half overdraft amount

      Thanks will take a look!
      ------------------------------- merged -------------------------------
      I thought it was suspicious! Im guessing that taking a loan out to please the bank manager is not the way to go...
      Last edited by shas; 25th September 2009, 13:50:PM. Reason: Automerged Doublepost
      :beagle:My threads :- UCA (Amex) : Moorcroft (Goldfish) : Cabot : Marlins : Shas v A&L & the world : Capital One : Direct Legal Collections...Egg, CO : Nationwide : Co-Op

      Comment


      • #4
        Re: Ltd Co been asked by Barclays to take out a loan for half overdraft amount

        They also need to be wary that the bank may want to secure the loan on property/assets of the business or Directors own property/assets. In simple terms, turning an "unsecured loan" into a "secured loan".

        My personal opinion would be for your friend to take independent legal advice and take them the T&C's of any agreement before signing.

        Also, as you state your friend has only a 33% share of the business, the other parties should also need to be in agreement to any action taken.
        Any opinions I give are my own. Any advice I give is without liability. If you are unsure, please seek qualified legal advice.

        IF WE HAVE HELPED YOU PLEASE CONSIDER UPGRADING TO VIP - click here

        Comment


        • #5
          Re: Ltd Co been asked by Barclays to take out a loan for half overdraft amount

          Thanks Tools, I emailed the link that nwsm posted to 2 of the shareholders. I think that has, at least, made them stop to think about it a little bit more.
          :beagle:My threads :- UCA (Amex) : Moorcroft (Goldfish) : Cabot : Marlins : Shas v A&L & the world : Capital One : Direct Legal Collections...Egg, CO : Nationwide : Co-Op

          Comment

          View our Terms and Conditions

          LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

          If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


          If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.

          Announcement

          Collapse
          No announcement yet.

          Court Claim ?

          Guides and Letters



          Search and Compare fixed fee legal services and find a solicitor near you.

          Find a Law Firm


          Loading...
          Working...
          X