urgent advice needed

VeraG

My dad runs his own business which at present is doing ok but has been doing rather badly although seems to be scraping through. He is at present £15000 overdrawn!
His bank, HSBC have recently got a new manager who has ordered the end of his overdraft by the 31st August.
They have offered him a loan with a rate of 28% with massive penalties if paid off early. Loan is over 3 years and is just short of £600/month
His house is currently up for sale which when sold will pay off most of his debts but he has had to reduce the price because of the current financial climate
He is paying £500/month for his mortgage.
He has to keep his business running up untill the house is sold as otherwise he will have no income at all.
He is 58 and this is very stressful, not only for him but me too as he has no partner.
He has a week to find a cheaper loan as the bank is constantly on his back and with a few defaults over the last few weeks is not going to be easy.
Any advice welcome

LilacPixie

Avoid an HSBC managed loan like the plauge. Could he switch his business account elsewhere?? Even if he can't port the overdraft he could make payments into the HSBC account to bring it back to its limit.

dux001

If the business is otherwise solvent, I'd be looking to change banks. I know it's not quite as simple with business accounts, but this sort of thing shouldn't be happening.

That said, this needs taking higher up the chain at HSBC. This is likely to be part of the new policies banks now have of reducing their exposure to potential bad debt. It might be possible to negotiate this with them.

VeraG

thank you but i think he would have trouble setting up another account with the defaults he has made on the other things