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Banks withdrawing credit facilities


tipp revolution

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Feb 16, 2011
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2,603
Fellow posters, I can't give too much detail of my situation as I come from a small community but here is a scenario.

Times are tough and it's an achievement to live within an overdraft. The overdraft has just been withdrawn without warning or discussion. Aib the bank in question. Tons of security. Is anybody else aware of this going on?
 

mr. jings

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Joined
Mar 31, 2008
Messages
8,095
Fellow posters, I can't give too much detail of my situation as I come from a small community but here is a scenario.

Times are tough and it's an achievement to live within an overdraft. The overdraft has just been withdrawn without warning or discussion. Aib the bank in question. Tons of security. Is anybody else aware of this going on?
Not to pry too much, but it could be an age thing. My old man was still working away sole trader style when they took his overdraft away with sod all notice a few years back. With fair weather friends, who needs enemies in the lean times...
 

b.a. baracus

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Feb 3, 2009
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2,230
There was a lot of talk about this in the media a few months back. Not heard so much lately. Appeal it anyway as the first step.
 

gerhard dengler

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Feb 3, 2011
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47,554
Fellow posters, I can't give too much detail of my situation as I come from a small community but here is a scenario.

Times are tough and it's an achievement to live within an overdraft. The overdraft has just been withdrawn without warning or discussion. Aib the bank in question. Tons of security. Is anybody else aware of this going on?
I've heard this before, except in this case the bank was Ulster Bank who withdrew commercial overdraft facilities to a SME company who has banked with UB for over 24 years.
 

commonman

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May 29, 2010
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5,357
The government give the Banks power to do what they want with the people and there money , any bankers in jail yet. i was told that if there is any bankers to go to jail it would be just before the next general election.
 

Catalpast

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Nov 17, 2012
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26,196
Does this mean you cannot borrow more until you pay back what you owe?

Because if it is

-then it makes perfect sense to me!
 

dizillusioned

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Jan 19, 2011
Messages
14,869
Yes, they withdrew my overdraft which has been in operation for 20 years. Rarely used, but they charged the fee each year. All bills are paid monthly completely. I do not operate an overdraft facility.

Worst of all, they phoned me up and wanted to discuss this issue. I told the woman after having accounts with them for 30 years never an issue, I would be moving my accounts to another bank (which I have done).
 

brughahaha

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Jun 1, 2009
Messages
15,284
Fellow posters, I can't give too much detail of my situation as I come from a small community but here is a scenario.

Times are tough and it's an achievement to live within an overdraft. The overdraft has just been withdrawn without warning or discussion. Aib the bank in question. Tons of security. Is anybody else aware of this going on?
I went in to discuss a business loan -AIB, again lots of security , long time customer

Looked at the figures and was told , no problem when i apply , everything fine , my account manager even went as far as to say he coud probably ok it there and then, but just needed to pass it by his boss ...... Later got an email with a list of ridiculous additional demands
Was telling the accountant whose opinion was that in reality only 1 normal finctioning irish bank with funds to lend exists
 

Ribeye

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Joined
Jul 12, 2011
Messages
26,306
Fellow posters, I can't give too much detail of my situation as I come from a small community but here is a scenario.

Times are tough and it's an achievement to live within an overdraft. The overdraft has just been withdrawn without warning or discussion. Aib the bank in question. Tons of security. Is anybody else aware of this going on?
My sympathies with your predicament,

But this has been going on since 2008,

I'm guessing you were living near the limit of the OD to a greater or lesser degree depending on your cash flow profile, and I assume that GayIB have informed you that the outstanding balance has been transferred into a term loan amortising over 5 years,

Aside from kicking up a fuss and telling that they are putting you out if business, I'm afraid there's not much you can do, I wish I had a solution for ye,

The banks are scum, and they don't give a fck about small business,

One more thing,

DO NOT SIGN ANY DOCUMENTS that they send ye until they have been reviewed by a competent solicitor.
 

Ribeye

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Jul 12, 2011
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Does this mean you cannot borrow more until you pay back what you owe?

Because if it is

-then it makes perfect sense to me!
I see you have no idea what a business overdraft is,
 

commonman

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Joined
May 29, 2010
Messages
5,357
Yes, they withdrew my overdraft which has been in operation for 20 years. Rarely used, but they charged the fee each year. All bills are paid monthly completely. I do not operate an overdraft facility.

Worst of all, they phoned me up and wanted to discuss this issue. I told the woman after having accounts with them for 30 years never an issue, I would be moving my accounts to another bank (which I have done).
I done the same, and i still got no overdraft from the new bank , there all the same and the credit unions are getting as bad.
 

daveL

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Joined
Oct 29, 2010
Messages
19,593
Does this mean you cannot borrow more until you pay back what you owe?

Because if it is

-then it makes perfect sense to me!
You obviously know sweet fu(k all about financing business...

Or the difference between business and personal banking
 

gerhard dengler

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Feb 3, 2011
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47,554
I don't - that's why I'm asking
Basically an overdraft facility for a company is a short term credit facility while the company waits to get paid by those who owe money to the company.

For example company A sells €100 of product to company B, using raw materials supplied by company C.

While A waits to be be paid by B, company A has to pay to company C for the raw materials used to sell product to B.
The bank will extend credit to A to allow it to pay C, while A waits to be paid by B.
 

brughahaha

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Jun 1, 2009
Messages
15,284
I don't - that's why I'm asking
Every business wil have cash flow problems , you could be working 18 hours a day yet not getting paid , or very quiet yet money rolling in

To iron out these peaks and troughs in cash flow many businesses use an overdraft as an ( expensive!) short term credit facility ,many might never use it but keep as a safety blanket

Its never for enormous amounts ( relative to turnover) and has nothing to do with loans per se
 

tipp revolution

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Joined
Feb 16, 2011
Messages
2,603
Not to pry too much, but it could be an age thing. My old man was still working away sole trader style when they took his overdraft away with sod all notice a few years back. With fair weather friends, who needs enemies in the lean times...
Does this mean you cannot borrow more until you pay back what you owe?

Because if it is

-then it makes perfect sense to me!
No it's a seasonal thing
 

Andycap

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Joined
Feb 22, 2012
Messages
1,277
No it's a seasonal thing
You need to give some more details without giving away too much.

Were you contacted by the Bank? - I wonder if it was a systems issue (i.e. the limit expired without anyone noticing).

Was the account always in debit? If so there may be a chunk of hardcore debt which the Bank, quite rightly, wants to term out over a period and have it reduced.

What was the swing from debit to credit on a monthly basis? In nearly all bank T&Cs there will be a requirement for the account to operate in credit for a certain period of days during the year. This is to avoid the hardcore scenario referenced above.
 

hammer

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Jul 6, 2009
Messages
58,514
Were you actually using the overdraft tipp ?

They wrote to me about two years ago and wanted me to get rid of the unused overdraft limit.
 

hammer

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Jul 6, 2009
Messages
58,514
I was reading about Georgie Mordaunt this month in Business Plus.

Maybe they are taking all overdrafts away from Tipperary business people !!!!
 

Dublin 4

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Feb 6, 2011
Messages
12,993
You obviously know sweet fu(k all about financing business...

Or the difference between business and personal banking
Or he's one of the lucky fukkers who know nothing about overdrafts :p
 
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