Re: Bank Lending Rates to Businesses
- From: Richard Faulkner <richard@xxxxxxxxxxxxxxxxxx>
- Date: Mon, 28 Nov 2005 23:30:49 +0000
In message <Xns971CDEAB6D16Dgsx750057xsg@xxxxxxxxxx>, Ferger <terferger@xxxxxxxxx> writes
What sort of range are banks typically lending at for secured business borrowing?
A member of my family is about 'go it alone' in his industry, which is a pretty sound proposition from a banker's point of view (I was one many years ago). He has approached his bank with business plan and a requirement for £35k of capital funding, which they're happy to lend him - at their 'standard' rate of 4 over base, secured with a second charge on his house.
Start from the point that they are probably trying to screw him for as much as possible, in the hope that he is ignorant of any alternatives......
Every time I have asked my bank for a loan, they only become close to competitive when I present them with a cheaper alternative - I f$%k&^g hate them!!!
2% over base is a "normal" rate for secured borrowing but, as another poster has said, why not borrow at 5% with a remortgage? It's no greater a risk and cashflow is better due to the longer term, or even the interest only facility.
-- Richard Faulkner .
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- Bank Lending Rates to Businesses
- From: Ferger
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