School Bank A/c

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Ravima

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I am on a school board. As is not unusual, we have an overdraft of about €16K. it is hoped with a bit of effort, to clear at least half this year. Current bankers have suggested (I presume that suggestion from a bank is code for will require) that board members individually guarantee the overdraft. I have advised treasurer to write to them saying 'dear sir, no, yours faithfully'. Current bankers are AIB. does anyone have any experience of school bankers and which bank would give the best deal?
 
Would this sort of community lending scenario not be right up the local Credit Union's street?
 
Surely any liability for school debts should ultimately rest with the Minister for Education!. Do not even consider giving a personal guarantee for the schools debts!
 
in my experience, banks will always ask for a personal guarantee even when they know they haven't the proverbial snowball's chance; get the overdraft facility approved for another 12 months and politely decline to provide a personal guarantee.
 
AIB are merely trying to keep order on the account. As with all these types of bodies, you can rely one head to go insane about the overdraft when in fact AIB have no real mechanism to retrieve. Ask for a much larger overdraft and tell them that the Department headage grant will assist.
 
As is not unusual, we have an overdraft of about €16K.
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There was a school principle on Radio earlier this week after his school won €50,000 for a history project. He mentioned the school had a €15,000 or €16,000 overdraft and they'd be able to clear that.

How is this the norm? Are school's carrying this kind of balance on an ongoing basis? Even at a measly 7% your school is paying over €1100 per year interest. I never realised the Christmas Raffle was solely to fund interest repayments.

How is the thought of parents guarenteeing credit for schools even being talked about? Are there some schools where parents have done this? Why on earth would a bank give a credit facility to a school and expect anyone other than the department of education to guarentee it?

And why are our schools borrowing money from commercial banks at presumably commercial rates while our government runs a surplus and even in a deficit has access to far cheaper credit?

I used to think we needed to start teaching kids about finances in schools. But if this is the way we're funding education perhaps we're better off keeping finance out of the classroom.

Absolutely NEVER go guarentor on a loan without a damn good reason. About the only good reason I can think of is that a member of your family is in so much trouble that you wouldn't mind paying the loan back yourself.

What next, patients being asked for the loan of a Visa card so the hospital can buy some pillows?

Parents going guarentor for loans taken out by our schools? Sweet Divine!!! You should at least get out of the hassle of selling raffle tickets at christmas.

-Rd
 
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