Business Loans - Barclays Rates

rodders65

Official MSE Insert:

If you've arrived from Google, our Business MoneySaving guide, including Business banking tips may be helpful.

Back to the original post...


:mad:I am a new business owner. I set the business up 2 years ago, and can be defined as a SME. I funded the business myself, and last month decided it was time to look at getting some finance to fuel the growth of the business.

I bank with Barclays business. I just wanted to share with everyone the real face of business support we are getting from our banks in the UK. I shopped around, and no bank was willing to lend me the required £20K (even though the business has been highly profitable since month 1). Eventually Barclays offered me a loan at staggering 19.95% plus £350 arrangement fee - not far off credit card rates.

I took the loan out and regret doing so, but needs must. There is such hypocrisy currently regarding the banks alleged support of small businesses. this loand is frankly crippling, and stiffles businesses such as mine, not supporting.

teajug

rodders65 wrote: »

:mad:I am a new business owner. I set the business up 2 years ago, and can be defined as a SME. I funded the business myself, and last month decided it was time to look at getting some finance to fuel the growth of the business.

I bank with Barclays business. I just wanted to share with everyone the real face of business support we are getting from our banks in the UK. I shopped around, and no bank was willing to lend me the required £20K (even though the business has been highly profitable since month 1). Eventually Barclays offered me a loan at staggering 19.95% plus £350 arrangement fee - not far off credit card rates.

I took the loan out and regret doing so, but needs must. There is such hypocrisy currently regarding the banks alleged support of small businesses. this loand is frankly crippling, and stiffles businesses such as mine, not supporting.

I would not deal with these 2 Barclay twins that own the bank and wants to own the island of Sark. To get what they want they are bullying out the residents of their homes in Sark by printing news letter telling lies about the residents.

http://www.bbc.co.uk/iplayer/episode/b01px74c/Panorama_The_Tax_Haven_Twins/

:eek::eek::eek::eek::eek::eek::eek::eek::eek:

chalkie99

teajug wrote: »

I would not deal with these 2 Barclay twins that own the bank and wants to own the island of Sark. To get what they want they are bullying out the residents of their homes in Sark by printing news letter telling lies about the residents.

http://www.bbc.co.uk/iplayer/episode/b01px74c/Panorama_The_Tax_Haven_Twins/

:eek::eek::eek::eek::eek::eek::eek::eek::eek:

That is nothing to do with Barclays Bank :huh:

leveller2911

rodders65 wrote: »

last month:mad: decided it was time to look at getting some finance to fuel the growth of the business.

Eventually Barclays offered me a loan at staggering 19.95% plus £350 arrangement fee - not far off credit card rates.

I took the loan out and regret doing so, but needs must. There is such hypocrisy currently regarding the banks alleged support of small businesses. this loand is frankly crippling, and stiffles businesses such as mine, not supporting.

There is no doubt the Banks are not adhering to the agreement to lend to small businesses ,however you say you wanted to borrow to invest in your business so why did you sign up to pay 19.95% interest?.

"Needs must" ? You didn't "need" to borrow as you already say the business is profitable so you could quite easily just keep running as before and taking the money.

No offence but I do wonder why some people treat borrowing money from banks the same as borrowing from close family. They don't know you, they don't like you and sure as hell have no intention of helping you.Its business and personally I would much rather some of the Banks were left to go bust but you made a choice knowing the interest was 19.95% I think 8-9% is more usual (stand to be corrected) so they may see your business as high risk and charge accordingly.

paddyrg

What about one of the peer-to-peer business lending schemes? Do you have assets exceeding the value of your loan?

rodders65

leveller2911 wrote: »

There is no doubt the Banks are not adhering to the agreement to lend to small businesses ,however you say you wanted to borrow to invest in your business so why did you sign up to pay 19.95% interest?.

"Needs must" ? You didn't "need" to borrow as you already say the business is profitable so you could quite easily just keep running as before and taking the money.

No offence but I do wonder why some people treat borrowing money from banks the same as borrowing from close family. They don't know you, they don't like you and sure as hell have no intention of helping you.Its business and personally I would much rather some of the Banks were left to go bust but you made a choice knowing the interest was 19.95% I think 8-9% is more usual (stand to be corrected) so they may see your business as high risk and charge accordingly.

I required the loan to fuel growth i.e. recruit new people, and invest in software systems. Usual requirements for a new business.

rodders65

The loan is to fuel growth in the business i.e. recruiting new staff, new software, investing in the future of the business i.e. necessary inputs to scale the business up.

I had zero borrowing before, the business is not high risk (other than being relatively new). The point I am making here is that Banks are just not supporting small businesses currently. I shopped around, and none of the other banks would better this interest rate. What is being aid publicly by the banks conflicts markedly with what they are actually doing.

paddyrg

So... do you have assets to cover the loan value? Private or in the company itself? Business lending is high risk compared even with personal lending (a ltd company could more or less close overnight with no way for the lender to recover their cash), so they charge more.

The assets question is about how you can offset the lenders risk, and so reduce their interest rates. If you can cover the risk, something like https://www.fundingcircle.com/ might work for you, with measurably better rates, you see :-)

lolavix

rodders65 wrote: »

I shopped around, and none of the other banks would better this interest rate.

natWest is around 9.4% unless they wouldn't lend to you for some reason? Barclays are notorious for being the most expensive for SME loans.

jonnyround

What is happening to all this cheap money that the Bank of England is lending to the banks at extremely low interest rates.
I thought that this money was intended to be lent to small business to generate growth. Well all it has done is generate extra profits for the banks. I took out a small business loan with Barclays at exactly the same rates with the £350 upfront payment. 19.55% interest rate is almost an 800% profit margin on the money they have been lent by the Bank of England. Where are the regulators this is why we are still in recession and will be for a long time. Yet again the only people making money are the banks and we are lending them the money to do it. Borders on usury no it is as they are as bad as Pay day lenders.

leveller2911

jonnyround wrote: »

. I took out a small business loan with
Barclays at exactly the same rates with the £350 upfront payment. 19.55%
interest rate is almost an 800% profit margin on the money they have been lent
by the Bank of England

.

All the time there are gullible people who take up their offer they will keep lending......... If you don't like it then don't borrow it and then they may even drop the rates to attract business but all the time people take up their offer then you will continue to line their pockets.