Problems operating within your facilities, facility excesses and charges
£75.00 (£86.25 incl VAT)

It is laid out as a series of questions you may be asking, with answers.  The questions escalate in degree as problems get more serious and need more corrective action.

We recommend that this module is read and used in conjunction with module 4 so you are clear how you ought to be running a borrowing facility and what the bank are looking for from a well run business with borrowing facilities operating as they should be.

Content Headings of Module

• Feedback from you about our advice
• Frequently asked questions
• Introduction
  - What are “cleared funds”?
  - “Cross Firing”
• Are you exceeding your facilities or unable to work within your limit?
  - Proactive Credit Control
• Is your problem short or long term?
• Are excesses financing losses/other projects/one off costs?
• Are your bank compliant with excesses; i.e. are they allowing you a margin of excess?
• Are they understanding and supportive of your position?
• Have your bank refused a higher facility or reduced the facility?
  - Lending ban on your business sector
  - Reached your risk assessed lending limit
  - “Capitalising” your “hard core” overdraft
  - Loss of trust with your bank manager
• Have your interest rate terms been amended?
• Are you paying Unauthorised Borrowing Rates on your facility excess?
• Are you being charged a daily excess or referral fee?
• Are the bank returning or “bouncing” cheques and direct debits and charging for this?
• OFT test case challenging legality of penal bank charges
• Is your account now being handled by a different department of the bank - “specialised lending” or similar - that manage accounts in default?
• Are you being charged additional management/monitoring fees?  Are charges appearing to be getting out of hand and excessive?
• Have the bank insisted on an accountant’s report at your expense?
• Setting up a new business current account at another bank when your current bank will not extend your facility and is looking to reduce it and you cannot setup replacement facilities on a timely basis to pay off the old ban in full.
• Challenging interest and charges and negotiating a repayment plan.
• Have you had a statutory demand to repay your borrowings in full?  Are you under threat of receivership/liquidation?
• Draft Bank Letter Suggestions
• Summary

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