Boi business loan

Johnoshamrock

Hi can anybody give me some advice . I am looking to go down the road and apply for a business loan with boi . Just wondering has anyone experience with this bank in terms of these loans and how they went

Bandara

Johnoshamrock wrote: »

Hi can anybody give me some advice . I am looking to go down the road and apply for a business loan with boi . Just wondering has anyone experience with this bank in terms of these loans and how they went

Depends on:

What's it for

How much it's for

How much you have to invest yourself

Who you are / your credibility

Your experience relative to your proposal

And several other factors

Ulster Bank are a better option at the moment

Johnoshamrock

Hi . It is for a franchise. I have 15,000 saved with them . But I need a lump some for my store. It is a start up so I have noting to shop them previously. Just what my future plans are

Buttercake

I have a loan out with them for €35,000 (3years into 5years) and last month i needed €15k, I called them up to ask for a topup or restructure and they said they dont do that anymore and offered a new loan. I said fine was approved that day, no forms to fill out and the money was in my account in 2 days.

They asked what it was for and i said equipment purchases and asked was my Revenue up to date.

Now on my existing loan I gave personal guarantees and have savings account with them with over €100,000 in it, they used this guarantee for the new loan.

Bandara

Buttercake wrote: »

I have a loan out with them for €35,000 (3years into 5years) and last month i needed €15k, I called them up to ask for a topup or restructure and they said they dont do that anymore and offered a new loan. I said fine was approved that day, no forms to fill out and the money was in my account in 2 days.

They asked what it was for and i said equipment purchases and asked was my Revenue up to date.

Now on my existing loan I gave personal guarantees and have savings account with them with over €100,000 in it, they used this guarantee for the new loan.

Sorry but I have to ask butter cake, tell me you didn't agree to them tying up 100k against a 50k exposure ?

mrawkward

2:1 security... pretty standard fare.

Bandara

mrawkward wrote: »

2:1 security... pretty standard fare.

No it's not


It's far from standard.

I very recently gave €60k security against 140k

mrawkward

Bandara wrote: »

No it's not


It's far from standard.

I very recently gave €60k security against 140k

Perhaps you are referring to specific security only, the borrowing entities other assets are also available to the lender, if they have any. 2:1 is a typical banking comfort level, in my experience.

pedroeibar1

The point to take from Buttercake's post is how the bank continues to 'work the system'. By refusing to restructure and instead making a 'new' loan, the entire amount is regarded as 'New Lending' and is fodder for "How we are helping small business with our 'new lending' which has blah blah" when the truth is quite different.

If you give a personal guarantee to a bank and push comes to shove, it can/will grab anything you have with it under the 'all sums due or to become due' clause in the agreement.

Bandara

mrawkward wrote: »

Perhaps you are referring to specific security only, the borrowing entities other assets are also available to the lender, if they have any. 2:1 is a typical banking comfort level, in my experience.

And as I said, in my experience it is not typical at all

And no, I am not referring to specific security only

mrawkward

Bandara wrote: »

And as I said, in my experience it is not typical at all

And no, I am not referring to specific security only

For clarity, the borrowed amount was €140k, sole security provided €60k with no other recourse/guarantees/the borrower has zero other assets that could be sought by BOI in default. Outstanding deal!

Bandara

mrawkward wrote: »

For clarity, the borrowed amount was €140k, sole security provided €60k with no other recourse/guarantees/the borrower has zero other assets that could be sought by BOI in default. Outstanding deal!

correct

Limited company, 140k, 60k in unencumbered cash put in holding account against the amount. Also included a business credit card with 10k limit.

That was with UB, BOI would do the same but for 85k and the pathetic excuse that is AIB wanted 110k.

mrawkward

As I said this is an outstanding deal. Especially with no recourse to any other personal or company assets other than the €60K, well done indeed.

Buttercake

Bandara wrote: »

Sorry but I have to ask butter cake, tell me you didn't agree to them tying up 100k against a 50k exposure ?

Sorry was on holidays, I gave a personal guarantee as it's a limited company, they know the savings are there which sped up the process but it wasn't mentioned on the surety of the loan, either time or any previous time, if I wanted more 100k+ then probably they would ask to tie in the savings account, maybe.