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Bank Demanding Loan repayment without any explanation

Hi

We have returned from holiday to find a letter form Nat West demanding repayment of our the outstanding 70k for our Business Loan

We have had this Loan for nearly 7 years and it is at a competative rate 2% above base .

We have never missed a payment and have co-operated with the bank at all times.

We have had an overdraft for a very long time which they suddenly requested repayment of again without any notice . They initailly stated the 12th Sept but changed this to the 23 August . Both dates which we will adhere too .

Raising the money for the overdraft wa a struggle but are they allowed to demand repayment of the business loan without any explanation ?

Please can someone give us some advice . This is very worrying

Regards:(

Comments

  • You need to check the terms of the loan - or speak to them directly. I don't think anyone here can help based on what you've posted.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Overdrafts are repayable on demand, loans normally have fixed terms. So normally it isn't possible to demand immediate payment of the remainder of a loan but yours may have different terms. NatWest clearly has a strong financial incentive to try to get you to repay when the interest rate is so low.

    You'll have to ask them to give their reasoning, including the reasoning which lets them terminate the loan before the end of its term.
  • Tixy
    Tixy Posts: 31,455 Forumite
    Did the loan have any covenants that you have breached?

    I have come across a few cases recently where banks have demanded repayments of business loans for broken covenants e.g. when the company have not been providing management figures monthly or have breached a financial covenant (even though the breaches may have been longstanding and not chased before).

    In at least one case this was down to very favourable interest rate - the bank basically reloaned the money but at a higher interest.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • geoffky
    geoffky Posts: 6,835 Forumite
    Jesus they are right scumbags aren't they?good luck and fight them all the way..I would get a contract lawyer to have a look at your paperwork..
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    geoffky wrote: »
    Jesus they are right scumbags aren't they?good luck and fight them all the way..I would get a contract lawyer to have a look at your paperwork..
    Your statement assumes you have the full facts at your disposal.

    You don't.
  • geoffky
    geoffky Posts: 6,835 Forumite
    I do have the facts available...banks are scumbags...
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
  • chanz4
    chanz4 Posts: 11,050 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    geoffky wrote: »
    I do have the facts available...banks are scumbags...

    take it you have been in a similar situation
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • dtsazza
    dtsazza Posts: 6,295 Forumite
    geoffky wrote: »
    I do have the facts available...banks are scumbags...
    That's an entirely unhelpful attitude, and likely to cloud your judgement.

    Let's get the actual facts of this situation, in order to better advise the OP on how to react, rather than just ranting about how a sweeping prejudice now counts as fact.
This discussion has been closed.
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