I have just had a call from my bank who have refused to renew m
overdraft facility which my business relies on at various times in th year. Is there an alternative way of financing my business as this wil have serious impacts on our chances of staying in business
Make sure you know precisely why your bank is declining to renew, and thus how you will counter that when talking to others.
Ensure your business plan (both numbers and narrative) is bang up-to-date and realistic in the context of current trading conditions. The fact you only use the facility for parts of the year (presumably a seasonal business?) may be a point worth emphasising.
Shop around the other banks, armed with the info from 1 and 2. Be smiley and confident - like you're choosing a supplier, not begging.
Don't accept a deal unless the overdraft limit is a bit bigger than you think you'll need.
When you get an offer, still try to haggle on terms (arrangement fees, interest and normal a/c operating fees).
After being nearly driven bust by a bank demanding, without good cause or reason on my business's behalf, that their overdraft be repaid immediately in 1986 I resolved never to have an overdraft again. At that time the bank was in trouble with its South American debts. But changes in bank manager, head office, economic climate - you name it and some small business will go to the wall because something happens that is nothing to do with them.
Beg, borrow (no, don't steal), get a formal set period loan, use invoice factoring, credit cards, re-issue shares, negotiate with your suppliers, negotiate with your customers.
You lose ownership of your business with an overdraft.
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