Da Banks..

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Da Banks..

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Ron.M

Posts: 7051
Joined: Jul. 7 2003
From: Scotland

Da Banks..

Just heard an interesting programme on the Radio about the problems small businesses are having getting loans and overdraughts from Banks.

(This is despite the fact that the Banks are only functioning on Public money, otherwise they would have gone bust long ago.)

So this guy with a small business gets a good offer to expand but needs £2,000,000

The Bank says they would have to do an investigation by auditors, which would cost £30,000 payable by him.

So he says OK and the report is made.

The Bank then says that there are a few things that they would have to look at closer and would need a further audit costing £40,000 (to him)

So he reluctantly agrees and the report is made.

So the Bank call him in and say OK...we'll lend you the £2,000,000...

BUT...

You will have to deposit £2,000,000 with the Bank first.

So the guy says he doesn't have the £2,000,000...that's why he came to the Bank in the first place.....but, out of curiosity... how would this work anyway?

So the Bank explains that if he had to deposit £2,000,000 with them as security, they would be prepared to give him 0.1% interest on it but would authorise a £2,000,000 loan to him at 3.5%

When he pointed out that this was crazy economics, the Bank responded by saying that these were difficult times and the Banks had to remain vigilant and proceed with caution and prudence.

This sort of stuff used to be Monty Python..

cheers,

Ron

REPORT THIS POST AS INAPPROPRIATE | Date Jun. 29 2010 20:35:09

Arash

Posts: 4495
Joined: Aug. 9 2006
From: Iran (living in Germany)

RE: Da Banks.. (in reply to Ron.M)

quote:

ORIGINAL: Ron.M

This sort of stuff used to be Monty Python..

cheers,

Ron

I went through this Monty Python show (german version) myself during the recent years in my business several times.
This happens all the time in nearly each company. Once i wanted a 50.000 loan for company, and they said : ok, deposit 50.000 from private money, and we give you 50,000 lol I said, well if i wanted to use my own money, i wouldn't come to you and ask for a loan. i even offered them other safety. they said, sorry, not safe enough, bank needs to be 100% sure, etc..... and that a$$hole was drinking my coffee in the office all the time. i want my coffee back......

If you ask me, we don't even need bank accounts anymore.
oldschool is much better.
I give you my potatoes and you give me your tomatoes.

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REPORT THIS POST AS INAPPROPRIATE | Date Jun. 29 2010 20:51:22

Jenny

Posts: 97
Joined: Mar. 13 2007
From: Oxford, UK

RE: Da Banks.. (in reply to Ron.M)

I couldn't agree more..

A friend of mine showed me this - (it's quite long when you watch all 5 parts but was an eye opener for me.) Apologies if you've already seen it...

Jenny

REPORT THIS POST AS INAPPROPRIATE | Date Jun. 30 2010 0:02:47

Pimientito

Posts: 2481
Joined: Jul. 30 2007
From: Marbella

RE: Da Banks.. (in reply to Jenny)

Good video. The best book on this subject is called "the creature from Jeckyll island" It is a history of the FED and banking from the Venetians to the world banks of today (who have the same family lineage by the way) It also discusses various ways of detracting us from this current situation. This is why we dont get taught monetary theory in school.

Thomas Jefferson said in 1802:
'I believe that banking institutions are more dangerous to our liberties than standing armies.
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake-up homeless on the continent their fathers conquered.'

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REPORT THIS POST AS INAPPROPRIATE | Date Jun. 30 2010 14:18:21

sean65

Posts: 414
Joined: Jan. 4 2010
From: London

RE: Da Banks.. (in reply to Ron.M)

That's interesting Ron. I've just applied for a career development loan from Barclays and was fully expecting it to be declined.

But to my delight, they accepted the application. All be it peanuts compared to the loan you're talking about but even still.

So I'll be dumping my Press Card in the bin (where it belongs) and escaping the clutches of the sick dog known as the UK Press and taking up the challenge of fine furniture making.

Can't wait.

REPORT THIS POST AS INAPPROPRIATE | Date Jul. 1 2010 7:11:15

Ron.M

Posts: 7051
Joined: Jul. 7 2003
From: Scotland

RE: Da Banks.. (in reply to sean65)

Yeah Sean,

You don't know all the details behind some stories that are presented in the press or on TV/Radio. They can put whatever spin on they like, although generally the BBC is pretty balanced.
Maybe they were asking him to put up £2M not in cash, but in securities (ie his Business premises and machinery, maybe even his house) before they would take the risk...which would be a pretty tough deal, but not wholly unreasonable.

I dunno. It's just that I keep hearing stuff about small businesses finding it very difficult to get finance even though they have a good trading record and prospects.

Hey! Good luck in your new career!

(Just don't go looking for a loan when you start up your Furniture business

)

cheers,

Ron

REPORT THIS POST AS INAPPROPRIATE | Date Jul. 1 2010 10:53:27

sean65

Posts: 414
Joined: Jan. 4 2010
From: London

RE: Da Banks.. (in reply to Ron.M)

quote:

I dunno. It's just that I keep hearing stuff about small businesses finding it very difficult to get finance even though they have a good trading record and prospects.

So do I. The fact that we're all having to change our lifestyles now because of the bankers really hacks me off.

Anyway, give a shout when you're ready for a lovely rockin' chair for the porch.

REPORT THIS POST AS INAPPROPRIATE | Date Jul. 1 2010 11:22:49

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