Bank Borrowing

A businesses bank will almost certainly be the first place a business will consider when looking to raise any type of finance. Statistics show around two thirds of businesses only speak to their bank, ignoring all other options.

Recent years have seen substantial, structural change within High St banks. The historic relationship that existed between a bank manager and the customer has gone. Banks have had their reputations understandably questioned after a number of scandals and the level of trust is not at levels that should be evident between banker and customer

Challenger Banks are appearing, offering conventional facilities and some try to sell the relationship side by recruiting former High St Bank personnel.

In many cases a businesses bank will be best placed to offer facilities that suit and match requirements, whether they deliver is another matter.

Bank Overdraft

In essence, within a normal trading environment, the overdraft level would equate to around one months worth of sales, although if the facility is consistently fully utilised, (hard core to use the bank term) consideration should be given to converting to a term loan.

The terms of any overdraft need to be considered, specifically the ease with which the bank may call the facility in.

If you have any issues with your bank or simply want to make sure you have the correct facility in place then please call/text me on 07966 492154 or email enquiries@factoringpartners.co.uk