Barclays 21%

DaveGeorge64

Ok where to start, I am a normal person trying to do good by my family as everyone else is, Earn your money pay your bills, Any money left over I buy things for family, I have hobbies, so not a bad life, Love my wife and Kids to the moon and back, Don't usually watch the news or read papers , as its all doom and gloom, don’t have yearly holidays, now and again we do, we are lucky and have horses and my wife loves taking my daughter to events around the country, The big events are very expensive so we don’t do those, so everything ticking along nicely. Then a Virus hits (COVID19). So I watch the news to see what is going on, has not changed much still doom and gloom, but now on our door step. So Boris is the person in charge saying how it is, some don’t like him, some do, some don’t care, I was watching him and he said low interest rates to help us through this monumental world changing disaster, He even caught the virus fighting for our Country, And is still fighting. NHS staff ,workers and people caring in every community helping people, while putting them selves and there loved ones at risk, There are no words of admiration for what you all are doing, Then Boris asks for a call to arms and 1 million plus people come away from a safe home and loved ones to help with the fight, Absolutely Amazing at there selfless act. Other massive manufacturers, putting there staff at risk making ventilating machines beds and valves   to help people who have it, to breath for them as there  lungs are under attack, and masks for staff on the front line. So then we go into lockdown ,Me and my wife are furloughed, and we are at home. I have to close my Business (Warminster Airsoft) as requested for safety so I do, and then we are waiting this out, So money is getting tight I will ask for a small loan from the bank I have been with for years, Barclays. Get in touch with my Business account people and start the ball rolling, Bit of a delay as it’s a bit busy understandable as most of the country are in the same boat, A few days later Ben my business account manager calls and asks what I need, so, I said £4,000 overdraft asap ,And £20,000 to pay bills and staff (1), and have some money in the bank to tied us over in this time of need, No problem does the usual security check, And away we go , off the bat quotes me 5-10% interest, more that 0% I was expecting, so was a little disappointed but I have no choice, After all the questions ie, what am I using it for, no new sports car, no new expensive toys, no new horses etc etc. Just for lasting this out and would give back what I did not need, so He said will put this forward and get back to me, Next day Ben phones ok we have this for you, Ok I said , £4,000 overdraft and £20,000 in account, and Then the oh and the interest is 21%, Sorry did you say Twenty one Percent ? Yes 21% oh what about all coming together as a country to fight this , ?  21% , I was absolutely speechless, What choice do I have. So I have decided to change the name of this VIRUS from covid19 to Barclays21. I cant believe a massive multi million or billion company are making 21% out of people when they are down, So if they lend £100 million pounds they make £21 million, And they will be lending a lot more than that. Sorry to Burden you  with this iam ashamed I bank with these people, and if I get through this will be looking at changing banks I think, Be safe and I hope you all are well. Dave. 

jjames1985

Why were you expecting to get a loan with zero interest?

cajef

Started to read that wall of text gave up after realising most of it was just a rambling rant, what made you think they would offer you a loan with no interest?

Clive_Woody

As far as I am aware loan APRs are still based on risk, and no disrespect but loaning £24,000 to a paintball company is probably considered a relatively high risk. With everything shut down your cash flow is going to be restricted if not stopped, so loan repayments will be a challenge and I guess Barclays fear that they may not see their money back.

Not the best time, but could you sell some of your horses to free up cash?

Thrugelmir

If your business doesn't survive then somebody else picks up the £24k tab. Like you selling your product to customers. Banks need to run profitability. Your last comment suggests you've never encountered a bad debt. 

DCFC79

If you want advice you have to post a short version, remove any emotion and waffle.

Duke203

My advice would be to stop using "So" to begin a sentence.

Be safe too.

MEM62

If you are a small business why have you not applied for the funding grant from the Government?  Also, if you have one staff member, why are they no furloughed?  In that case 80% of their salary (up to £2,500 per month) will be paid by the Government.  It sounds like you have gone straight to the bank and borrowed money without looking at the other options.     

yksi

The loan offered to you has nothing to do with either any official interest rate or any heartwarming good-vibes idea of being kind to people suffering though no fault of their own. It's purely and simply based on how risky the loan is for the bank. If you had a business guaranteed to succeed you'd have been offered a really low rate. You've been offered a rubbish rate because they think there's a good chance you'll never pay it back. If you expect to be given a bombproof loan than you need a bombproof company - say, for example, you built coffins. Sobering but true, your business is one that has really good odds of losing money for quite a while yet. You aren't alone, and I have sympathy, but that doesn't mean that banks should act like charities.

macman

If you only have one member of staff to pay, then how can you and your wife have been furloughed? You must both be paid as employees, not as directors taking a dividend. And how can you already owe £20K in wages to the other employee and bills when the lockdown has only been in place for 3 weeks? Most of this debt must have been pre-existing.
As for expecting a £24K loan at 0%, you must be living on another planet...