What is ABL? I'm told mine is £14000 but have no idea what it is

moneysavingallday

While at HSBC today I saw some paperwork on the desk that said ABL Offered: £14,000. I asked the Advisor what that meant and she said it is the amount the bank is willing to lend me. I sort of laughed and said, so are you gonna hand it to me in a huge sack then right now? She laughed along but did not really explain. She just said some vague thing about this being the amount available to me.

Available to me in what way? And £14k is available to me why is the limit on the credit card they've just given me 'only' (not that I'm saying this is bad) £3000?

Anyone heard of this ABL thing before?

YorkshireBoy

moneysavingallday wrote: »

Anyone heard of this ABL thing before?

ABL = Asset Based Lending.

Google HSBC ABL for more info. As well as HSBC links, several hits direct back to this very site. One example being http://forums.moneysavingexpert.com/showthread.html?t=665563 (page 3)

Lokolo

Because there are other products you can take out. Credit cards, loans etc.

The ABL is the Asset Based Lending. Basically if you wanted to get a credit card they would give you a limit. Your ABL limit would then reduce by this amount.

Example, new customer ABL limit of £10k.

You get a credit card with £500. ABL = £9.5k
You get a £2k overdraft. ABL = £7.5k
You get a £7.5k loan. ABL = £0

You can now not borrow anymore money from them.

Afahmaep

YorkshireBoy wrote: »

ABL = Asset Based Lending.

Google HSBC ABL for more info. As well as HSBC links, several hits direct back to this very site. One example being http://forums.moneysavingexpert.com/showthread.html?t=665563 (page 3)

Now you're talking my language. Acronyms. I've been asking for my pre-approved limits (PALs) when I should have been asking for my ABLs.

Afahmaep

YorkshireBoy wrote: »

ABL = Asset Based Lending.

Google HSBC ABL for more info. As well as HSBC links, several hits direct back to this very site. One example being http://forums.moneysavingexpert.com/showthread.html?t=665563 (page 3)

Now you're talking my language. Acronyms. I've been asking for my pre-approved limits (PALs) when I should have been asking for my ABLs.

YorkshireBoy

Afahmaep wrote: »

Now you're talking my language. Acronyms. I've been asking for my pre-approved limits (PALs) when I should have been asking for my ABLs.

I'm totally against them. In fact, we have far too many TLA's (three letter acronyms).

Afahmaep

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moneysavingallday

Lokolo wrote: »

Because there are other products you can take out. Credit cards, loans etc.

The ABL is the Asset Based Lending. Basically if you wanted to get a credit card they would give you a limit. Your ABL limit would then reduce by this amount.

Example, new customer ABL limit of £10k.

You get a credit card with £500. ABL = £9.5k
You get a £2k overdraft. ABL = £7.5k
You get a £7.5k loan. ABL = £0

You can now not borrow anymore money from them.

This means then that I can go into HSBC (hypothetical as I would not really do this) and get an overdraft of £14,000? That is the amount her printout says I have left of the ABL, I believe.

Lokolo

moneysavingallday wrote: »

This means then that I can go into HSBC (hypothetical as I would not really do this) and get an overdraft of £14,000? That is the amount her printout says I have left of the ABL, I believe.

Kinda yeh. I think there are then limits / product. The ABL is just the total. So like Overdraft max of £1000. etc.etc.