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  • FIRST POST
    • sgell
    • By sgell 14th Sep 17, 9:11 AM
    • 5Posts
    • 0Thanks
    sgell
    Overdraft set off
    • #1
    • 14th Sep 17, 9:11 AM
    Overdraft set off 14th Sep 17 at 9:11 AM
    Our US$ account is always in credit.
    Our GB£ account is usually overdrawn.
    We don't want to transfer $s to £s as most our supplier payments are in $s.
    We need a bank which will set off our credit $ balance against our debit £ balance before charging interest.
    Stephen
Page 1
    • PeacefulWaters
    • By PeacefulWaters 14th Sep 17, 10:44 AM
    • 7,170 Posts
    • 8,833 Thanks
    PeacefulWaters
    • #2
    • 14th Sep 17, 10:44 AM
    • #2
    • 14th Sep 17, 10:44 AM
    Good luck with that.
    • glentoran99
    • By glentoran99 14th Sep 17, 10:50 AM
    • 4,822 Posts
    • 3,825 Thanks
    glentoran99
    • #3
    • 14th Sep 17, 10:50 AM
    • #3
    • 14th Sep 17, 10:50 AM
    do your admin better and keep the GBP in credit by transferring from $ as and when required
    • sgell
    • By sgell 14th Sep 17, 11:41 AM
    • 5 Posts
    • 0 Thanks
    sgell
    • #4
    • 14th Sep 17, 11:41 AM
    • #4
    • 14th Sep 17, 11:41 AM
    Is that supposed to be helpful?
    • sgell
    • By sgell 14th Sep 17, 11:43 AM
    • 5 Posts
    • 0 Thanks
    sgell
    • #5
    • 14th Sep 17, 11:43 AM
    • #5
    • 14th Sep 17, 11:43 AM
    If we did that we would lose on exchange because most of the $s are need for supplier payments.
    Our present bank nets $ & £ so we can stay within our OD limits but they are being difficult so we need to find another bank who would offer the same netting arrangement.
    S
    • beebrook
    • By beebrook 14th Sep 17, 2:20 PM
    • 40 Posts
    • 48 Thanks
    beebrook
    • #6
    • 14th Sep 17, 2:20 PM
    • #6
    • 14th Sep 17, 2:20 PM
    Our US$ account is always in credit.
    Our GB£ account is usually overdrawn.
    We don't want to transfer $s to £s as most our supplier payments are in $s.
    We need a bank which will set off our credit $ balance against our debit £ balance before charging interest.
    Stephen
    Originally posted by sgell
    You're going to lose money in exchange. Sorry it's not the answer you were looking for.
    Debt to date: £4731.75 - 97.2% left to go
    Debt upon joining (Sep'2017): £4,870 - Loans, Credit Cards & Nationwide Overdraft
    • glentoran99
    • By glentoran99 14th Sep 17, 2:23 PM
    • 4,822 Posts
    • 3,825 Thanks
    glentoran99
    • #7
    • 14th Sep 17, 2:23 PM
    • #7
    • 14th Sep 17, 2:23 PM
    If we did that we would lose on exchange because most of the $s are need for supplier payments.
    Our present bank nets $ & £ so we can stay within our OD limits but they are being difficult so we need to find another bank who would offer the same netting arrangement.
    S
    Originally posted by sgell


    The $ are needed as £ currently so you aren't in debt with the bank, Its illogical to have a debit balance when you have the money
    • RG2015
    • By RG2015 14th Sep 17, 2:42 PM
    • 492 Posts
    • 234 Thanks
    RG2015
    • #8
    • 14th Sep 17, 2:42 PM
    • #8
    • 14th Sep 17, 2:42 PM
    If we did that we would lose on exchange because most of the $s are need for supplier payments.
    Our present bank nets $ & £ so we can stay within our OD limits but they are being difficult so we need to find another bank who would offer the same netting arrangement.
    S
    Originally posted by sgell
    Are you prepared to say in what way is your present bank is being difficult?
    Last edited by RG2015; 14-09-2017 at 2:50 PM.
    • sgell
    • By sgell 14th Sep 17, 5:32 PM
    • 5 Posts
    • 0 Thanks
    sgell
    • #9
    • 14th Sep 17, 5:32 PM
    • #9
    • 14th Sep 17, 5:32 PM
    They want us to reduce our net OD
    • RG2015
    • By RG2015 14th Sep 17, 6:10 PM
    • 492 Posts
    • 234 Thanks
    RG2015
    They want us to reduce our net OD
    Originally posted by sgell
    I understand and this does raise a number of questions although I do not believe that this is an appropriate place for any further discussion of your business finances.

    I used to manage the banking and treasury affairs of a large company which held bank accounts in USD, EUR, CHF as well as GBP. However, the issue of offsetting never came up in discussions with our Relationship Manager so this is the first I have heard of it.

    I cannot advise on any banks that offer this service but I imagine that your bank are trying to find a way out of your current arrangements.
    • JuicyJesus
    • By JuicyJesus 15th Sep 17, 11:21 AM
    • 3,041 Posts
    • 3,156 Thanks
    JuicyJesus
    It's not particularly logical to expect credit deposits in one currency to offset against debit balances in another, and I don't think any bank offers this service for that reason.

    Not least since the amount you'd be offsetting would differ based on the daily exchange rate anyway, so you'd be exposing yourself to exchange rate risk regardless.
    urs sinserly,
    ~~joosy jeezus~~
    • sgell
    • By sgell 15th Sep 17, 11:24 AM
    • 5 Posts
    • 0 Thanks
    sgell
    HSBC do this.
    Surely there must be some others?
    • xylophone
    • By xylophone 15th Sep 17, 11:48 AM
    • 23,427 Posts
    • 13,622 Thanks
    xylophone
    HSBC do this.
    But won't take you as a customer?

    They want us to reduce our net OD
    Not much of a surprise there then.

    And if your bank starts taking "a robust view of the circumstances", you might find that they'll end the banking relationship......
    • Ballard
    • By Ballard 15th Sep 17, 1:37 PM
    • 1,641 Posts
    • 1,395 Thanks
    Ballard
    I find it hard to believe that any bank would use the balance of one currency to offset another. If you’re overdrawn in USD then your bank will have to borrow dollars to cover it. If they simply offset against a sterling account then effectively they’re using your funds which have a low interest rate against a higher interest rate. The effect would be that they’d lose money.

    They may well have a right to offset but this would be to cover them should you go too far overdrawn.
    I got a letter from the government the other day. I opened it and read it. It said they were suckers.
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