Panorama - Credit where credit is due.

Alan_M_2

Apologies if this has been processed recently.

I watched this on Iplayer this afternoon.

http://www.bbc.co.uk/iplayer/episode/b00hvty9/Panorama_Credit_Where_Its_Due/

I'm in a similar position to the light switch manufacturer, I have an order book I can't fulfill due to my bank pulling my existing facilities.

I've applied for the EFG scheme, the one banded about on TV News all the time and keep being fobbed off with "We don't have the full details of the EFG" nonsense.

What is being announced on the news is not reaching the small business operators.

adr0ck

Alan_M wrote: »

Apologies if this has been processed recently.

I watched this on Iplayer this afternoon.

http://www.bbc.co.uk/iplayer/episode/b00hvty9/Panorama_Credit_Where_Its_Due/

I'm in a similar position to the light switch manufacturer, I have an order book I can't fulfill due to my bank pulling my existing facilities.

I've applied for the EFG scheme, the one banded about on TV News all the time and keep being fobbed off with "We don't have the full details of the EFG" nonsense.

What is being announced on the news is not reaching the small business operators.

unfortunately Alan its all soundbites

Crash Gordon likes to spout on about this scheme and that scheme and how this will help so and so

and then we all wait for months and months......and nothing actually ever happens

bit like he's going on about fred (no revolving doors) goodwin.....and his pension.......nothing will ever actually be done about it

laurence2163

I was speaking to our bank manager (RBS) last week, and they have only just got the details. He is only aware of a couple of deals gone through.

Apparently the scheme only acts as a guarantee if the owners of the business have no other assets that they are willing to put up as security. So if you own your house you are expected to put that up as security first.

lynzpower

OUt of interest Alan, how much are you looking to borrow, is it a massive amount? I saw this programme and weirdly did think of you after what you said the other week about having a large order....

Alan_M_2

lynzpower wrote: »

OUt of interest Alan, how much are you looking to borrow, is it a massive amount? I saw this programme and weirdly did think of you after what you said the other week about having a large order....

We're looking for £200,000

lynzpower

Alan_M wrote: »

We're looking for £200,000

I will gladly lend you the contents of my copper jar but 200k is more than Ive got im afraid.

However, I really do wish you all the best with it Alan x

Alan_M_2

laurence2163 wrote: »

I was speaking to our bank manager (RBS) last week, and they have only just got the details. He is only aware of a couple of deals gone through.

Apparently the scheme only acts as a guarantee if the owners of the business have no other assets that they are willing to put up as security. So if you own your house you are expected to put that up as security first.

This is actually the SFLGS scheme that has been in place for many years, it's just had the parameters changed, and that's it. So suggesting they aren't aware of it is nonsense (quote from a friendly HSBC manager).

The security question is a bone of contention.

They already have our house, it's that, that has actually become the issue.....

LloydsTSB have calculated that there's a significant risk of the housing market falling to such a level that in their words "There is no lending value in the property" (mortgage currently 50% LTV). Therefore our current lending which is secured against said property is no longer secured and we'd like it all back please.

Now we apply for an EFG loan, it's being suggested (I've yet to have this in writing for obvious reasons) that as we have equity in the property available we can secure the loan against that....therefore we don't qualify for the EFG scheme (same bank by the way).

Yeah...really helping the small business...

These schemes are put in place to make the press happy, I've yet to find anyone who actually qualified for one.

I must add here that the definition of "Lending value" and "Equity" are two different things and according to the bank not the same thing.

So we find ourselves in a position where we do not have any "Lending value in our property" which precludes us from borrowing against it, however because we have "Equity" in the property we don't qualify for the EFG....

mystic_trev

Alan_M wrote: »

What is being announced on the news is not reaching the small business operators.

I find that disgusting. I know nothing about you (apart from what I've read on this Forum) however, yours sounds like a sound well run operation. I wish you the best of luck, which is (I'm afraid) all I can offer.

geoffky

alanm at what rate would you have to pay back on this 200k and timeframe? thanks..pm me if you do not want it public

MrFonzerelli

A tax system where Business or BT income can be offset against debt interest payment, encouraged businesses to take on debt. Now the taps of credit have turned off.
Silly government.

harryhound

Alan_M wrote: »

So we find ourselves in a position where we do not have any "Lending value in our property" which precludes us from borrowing against it, however because we have "Equity" in the property we don't qualify for the EFG....

Alice in Wonderland