Barclays withdrawing overdraft facility

DayDreamJay

Hi, my first time here, I am hoping that someone could offer me some advice on a small matter.

About 5 years ago I applied for and got an overdraft facility on my business account at Barclays bank of £5,000. This was to help with the cost in refitting out small shop.

At the time I wasn't told that it was for a definite period of time although I will admit I don't remember the small print.

Several times Barclays have tried to get me to switch my overdraft to a loan but I have refused as my overdraft rate is cheaper than the loan rate they were offering,

I am still £5K overdrawn as our shop has suffered hard times during the credit crunch. I do however pay all the charges every quarter without fail and have a small turnover of a about £8K pa going through the account.

I got a letter today saying that my overdraft facility has expired and that I need to meet a bank representative for a business review. It says "Failure to do this could result in the withdrawal of the facility and unauthorised charges occurring on your account"

Is there anything I can do about this? I am really worried as I can't pay back the o/d at the moment and I need the Visa Debit card I have on the account to run my business.

Any help gratefully received.

Jay.

ironlady2022

They can withdraw it at anytime but you need to meet with bank as stated and see what they say.

izools

You might need that loan after all

You will also be hard pushed to be approved for a #5K Overdraft again with a mere #8K annual turnover. But certainly the loan should be an option. Good luck! Hope all goes well :beer:

PNPSUKNET

£8k turn over, been honest how do you pay yourself? Maybe time to cut a loss and call it a day.

coolesticeking

Yes it's best to see them as they say - I don't know how it works on the business side of things but they may have more of a human touch on these things rather than the computer doing all the work (But it could just be the same as it is for personal customers)

Hope it goes well for you!

izools

PNPSUKNET wrote: »

£8k turn over, been honest how do you pay yourself? Maybe time to cut a loss and call it a day.

OP says #8K Turnover "on this account"... perhaps OP has much more on another account / other accounts?

JassyJeff - don't be so rude.

DayDreamJay

PNPSUKNET wrote: »

£8k turn over, been honest how do you pay yourself? Maybe time to cut a loss and call it a day.

My turnover is larger than £8K, it's mostly cheques that I pay in at that account. Most of my turnover is cash and as I pay my main supplier by cash every week I don't bother banking it.

pmduk

Just ensure that you've a full set of accounts to show the bank. You can understand them getting nervous when they only see a small proportion of your turnover.

vaporate

Surely the bank approved your business plan in order to issue you your 5k overdraft? Or am I old fashioned in the money sense department?

As others said best to arrange some form of financial review to come up with a repayment plan.

Best of fortune :beer:

JuicyJesus

DayDreamJay wrote: »

My turnover is larger than £8K, it's mostly cheques that I pay in at that account. Most of my turnover is cash and as I pay my main supplier by cash every week I don't bother banking it.

They will then have no idea as to the actual turnover of your business if what they're seeing excludes a massive part of your takings. In such circumstances I can entirely see why they'd do what they did.

You'll need to supply them with full accounts and such, as others say.