Overdraft query

S

scruff

Registered User
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I've just opened my business this year (retail) and im starting to think about the xmas market. There is a certain product id like to sell but i wouldnt have the cash available at the moment. An overdraft was mentioned to me as an option.

Whats the deal with these? Do i pay much interest? Whats the difference between them and a loan from say the credit union?

I was thinking next year may be safer for me when we have more cash in the bank, plus the bank prob doesn't give to new businesses anyway.

Any help would be greatly appreciated. Just thought id stick a thread up here before i go talk to bank manager.

Regards.
 
Well before you visit your Bank it might be an idea to learn the basis of funding a business before you make a fool of yourself.

Unless you are completely flush with cash, Loans and Overdrafts form part & parcel of running a business.
 
mercman said:
Well before you visit your Bank it might be an idea to learn the basis of funding a business before you make a fool of yourself.

Unless you are completely flush with cash, Loans and Overdrafts form part & parcel of running a business.
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Whats with the attitude?

How would going into my bank manager and asking about advice re:funding be 'making a fool of myself'?

Secondly, not every business uses external funding to grow so your second point is also flawed.
 
I've no attitude at all

Whats the deal with these? Do i pay much interest? Whats the difference between them and a loan from say the credit union?

You have asked the question, for which the basis of this forms part of Business school books. Unless you learn the basis of financing options for business you will be laughed at.

Save yourself the embarrassment and search the web for learning a few basics. And before you attack me, I wish you well in your venture.
 
mercman said:
I've no attitude at all

Whats the deal with these? Do i pay much interest? Whats the difference between them and a loan from say the credit union?

You have asked the question, for which the basis of this forms part of Business school books. Unless you learn the basis of financing options for business you will be laughed at.

Save yourself the embarrassment and search the web for learning a few basics. And before you attack me, I wish you well in your venture.
Click to expand...

Your reply was a snipe at my supposed lack of knowledge on 'the basis of funding a business'. To such an extent you thought id be 'making a fool of myself' if i went to have a chat with my bank manager.

To me that's a useless and unhelpful comment. Im clearly posting this thread to learn more, why couldn't you have just given me your advice?

You have instructed me to search the internet for learning a few basics, this IS the internet remember. And i'm on here looking for some advice from other business owners. All you could manage was a little snide comment about my lack of knowledge, as if it was laughable ("you will be laughed at"). Thats not what i came here for.

And by the way, i don't think a bank manager will laugh at me if i go in to get info on funding. That makes me wonder how many meetings you have actually had with a bank manager . Mine is very friendly and approachable.

I am not attacking you, but yes i am pulling you up on your unhelpful reply. I don't do passive aggressive, i say what i mean.

Last time i'll be coming here for help from the business community.

Good day.
 
Hi there - I don't have much to add by way of financial advice but just wanted to say that I wouldn't let one bad experience deter you from coming to this forum for advice now or in the future. That would be a shame. I would ignore the unhelfpul or sarcastic comments and use the helpful ones:) My experiences have been positive for the most.

Good luck with the venture!
 
fababby said:
Hi there - I don't have much to add by way of financial advice but just wanted to say that I wouldn't let one bad experience deter you from coming to this forum for advice now or in the future. That would be a shame. I would ignore the unhelfpul or sarcastic comments and use the helpful ones:) My experiences have been positive for the most.

Good luck with the venture!
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Hey thanks.

I do appreciate that.

I get great support from the local business community and also at large generally. So i do understand that the business community is supportive of each other in general. I just abhor negative people. I dont see the need. I never let it slide.

I'll get my advice, i already have from business friends and also a bit from bank manager. I was coming here to get an outside view ye know. I'm always keen to learn from others. Thats why this persons idea that i should read basic business books is such a joke to me. Ive hundreds of them. God forbid i might not be s clued up on a certain subject as this person thinks i should be.

Thanks anyway bro, i will stick around and maybe when ive more experience i can help others :)
 
You need to do a cashflow / business plan with your accountant before going anywhere near the bank.

You can't go into a bank manager unprepared as this will give them a bad impression. You must be prepared and know how much and what type of finance you want. The bank manager may say no, suggest another amount or type of finance but they will not do a cashflow for you.
 
What you are looking for is a stocking loan - these are loans for short period at rates better than overdrafts. They are specifically designed for the purchase of seasonal stock.
e.g. I hope to get 100k stocking loan next week (at this level the bank usually wants security), the loan remains at 100k until I decide to pay it off or until the loan period ends (usually 31st December for xmas stock) but the interest is paid monthly.

For small amounts up to 30k (AIB) or 50k (Ulster Bank) a personal guarantee and a profitable business and a good reason may be suffucient.
 
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