Lloyds business overdraft removal

Mack79

My wife and I have a business account with £1k overdraft with Lloyds. Currently, the overdraft is maxed out.

Recently we had a letter from Lloyds advising that the overdraft is up for review and to contact them asap. When we spoke to the advisor he said they will want to see our accounts. Due to the pandemic and IR35, the business has been making a loss for the last couple of years. We are due to speak to them again in the next couple of days.

I know they will close the overdraft facility but I would like to know what to expect the solution to be. We can't pay down the overdraft in one go so can anybody advise on what the bank will likely offer us. Will it be a loan or some other arrangement?

Savvy_Sue

I don't know, but prepare the most robust case you can for returning to profit. How will you make it happen, how soon etc?

You say it's a business account, are you a limited company?

Mack79

Savvy_Sue said:

You say it's a business account, are you a limited company?

Yes it is a limited company. 

Savvy_Sue

Ah! You know there are problems if you continue to trade while insolvent? You REALLY need to show things are improving. What does your accountant say?

Thrugelmir

Request a loan to repay the overdraft. Might well be at a cheaper rate of interest. 

Mistral001

Go along to the bank and lay your cards on the table.  They might give you some good advice,  And it will be free.