Lloyds TSB Business overdraft

Redbull_UK

I have a small limited company (2 partners). We've had a business overdraft for the last 2 years which has allowed us to trade during the tricky times. Recently, over the past 4-5 months trading has improved dramatically and we find ourselves back in credit. This coincides with the impending end of our current o/d facility (finishing in Jan).
We've just received a letter from Lloyds to say they're not going to renew our facility. While we obviously don't want to use it, it's useful to have the facility there.
During the course of conversations with them, Lloyds say we can convert it to a loan or (a very confusing) facility which seems to involve paying fees, interest and loan interest???

Call me cynical, but this looks like a ploy to screw me for more money now that we are less likely to be using the overdraft - if we're not using it, we're not paying interest.
Typical greedy bank I guess - if they can't make money from you one way, they'll change the game until they can.

Or is it me?

COOLTRIKERCHICK

I have an od facility but very rarely i dip into it, its is purely there as a safety net, My Od is by guarentee, so basically even though i am a ltd company if things went pear shaped i would be personally liable for the OD

have you tried appy for a business account with a dif bank? you will also get their free banking for 12/18 months;)

If you feel unhappy with the current situation with lloyds, def shop around...

also dont be too hasty not to have a od facility ( especially as you were using it regularly until recently) as we are not out of the woods yet with the recession.. what we have been through just might be the tip of the iceburg....

Savvy_Sue

Agree with CTC, look around: even if you hang onto the Lloyds account for a bit, you might find a better offer elsewhere.

cavework

Go out and get the best deal available . if you can move..
we are in a crisis but we will continue to trade and when we have cleared all debts to our business bank next year we wil be waving them goodbye