Any Limited Company banking with HSBC Please Help !

[Ukfatboy]

Hi,

Hoping any limited company who banks with HSBC might be able to help us :|

We are a small limited company (450K turnover ) who have banked with HSBC from the start , some 5 years . We have a 6k overdraft limit and a hsbc credit card of limit of 8k which is paid in full every 30 days.

We are profitable, have never in 5 years gone over our limits , have no creditors , no judgements against us, are upto date with companies house etc.

Our manager of 5 years has moved to another department. So on friday we had our first meeting with our new commercial manager and it does not go well

5 minutes into the meeting , he states that unless we give him personal guarantees he will cut our combined overdraft/card limit to 3k.

When we ask why he says its policy for all limited companies banking with hsbc and he does not know how we have "got away with it " to date.

To be honest I think its him not the bank but can i ask anybody out there who is a hsbc limited company customer to let us have your experiences ?

getting ready for a fight

 

[Fernhurst Solutions Ltd]

I have a contact at HSBC who is a "Premier Manager" ... if you want to PM me some more details, I can have a word with her if you like?

 

[Simon-M]

Just move bank

 

[GRDCredit]

To be honest it probably is a bit unusual for a 'small' company to have unsecured facilities of £14k and I wonder if any banks out there would take over these limits on an unsecured basis?

Being devil's advocate - why would you not be prepared to sign a guarantee?

 

[lesliedocherty]

we are with HSBC and had to put charges against our property for overdraft and credit card,

 

[KM-Tiger]

Yes, been down that road, but it was a few year back.

Used to have a 50K unsecured BACS daily limit, and like you, never a problem in the conduct of the account. New manager: "I don't know how on earth you got that", clearly sh*tting himself when thinking of the possibilities!

Seems like HSBC have changed their policy and want all possible borrowings secured in some way or another. We compromised and left the BACS in place, with a clear understanding that any further facility would require security.

They will always ask for personal guarantee, and preferably want the option to take your wife, children, mother in law and grandmother as well, just in case. But there are alternatives. If your company has some physical assets then they could take a charge or debenture over those. They'll harrumph about that, but if you throw in a few "Well Natwest said" and "the Barclays manager said", you might just get somewhere.

Good luck!

 

[panachesols]

Move banks, I have a personal account with them and have had endless hassels

 

[vad.ch]

If your company has some physical assets then they could take a charge or debenture over those. They'll harrumph about that, but if you throw in a few "Well Natwest said" and "the Barclays manager said", you might just get somewhere.

Agree with the above.

I am sure the balance sheet over the years has built up a bit and would look ok for a floating charge, so if they still are not happy with that, try another bank - someone will be!

 

[yorkshirejames]

Hi,

Hoping any limited company who banks with HSBC might be able to help us :|

We are a small limited company (450K turnover ) who have banked with HSBC from the start , some 5 years . We have a 6k overdraft limit and a hsbc credit card of limit of 8k which is paid in full every 30 days.

We are profitable, have never in 5 years gone over our limits , have no creditors , no judgements against us, are upto date with companies house etc.

Our manager of 5 years has moved to another department. So on friday we had our first meeting with our new commercial manager and it does not go well

5 minutes into the meeting , he states that unless we give him personal guarantees he will cut our combined overdraft/card limit to 3k.

When we ask why he says its policy for all limited companies banking with hsbc and he does not know how we have "got away with it " to date.

To be honest I think its him not the bank but can i ask anybody out there who is a hsbc limited company customer to let us have your experiences ?

getting ready for a fight

Don't sign this! I am a signatory on two Ltd Co accounts with HSBC, and on one (trading 5 years, bank account always in profit, dozen or so transactions per month) they refused point blank to put a small overdraft in place, on the other (trading for a year, not that much activity I'll admit) they also refused.

Do NOT sign this personal guarantee with them. From now on, double-check every document they ask you to sign, and every copy of a change in terms & conditions they send you.

 

[MrDuck1984]

I agree with the majority of the replies you have got here. However, I am very shocked that you had the unsecured overdraft/credit card in place in the first place.

But at the same time, banking with them for 5 years, and seeing the general activity of the account, I am surprised they have simlpy withdrawn it. Especially if the above is true... Has there been a rapid fall in your turnover? Have you filed your recent accounts at Companies House?

I would think carefully before taking on a charge against your property/assets etc..

Also a point worth mentioning, is that Zurich a credit insurer we currently work with, has withdrawn alot of our customers credit limits.. So we are dependant on the whole activity of the account...

Good luck, let me know what the outcome is!

Mrduck

 

[Mattonella Tile Studio]

It is HSBC policy, and has been for a very long time, to limit unsecured lending facilities to Ltd companies to 3k.

It is definately the bank, and not this manager (who will be being told what to do regarding lending policy) and likewise I'm amazed you got away with it for so long too.

 

[Big Pete]

I have HSBC accounts and 10k is maximum without security, which in this day and age is fair i reckon..

I have found them to be very good with me on every matter i have ever needed and been with them some 20 years

 

[Mystro]

Been With HSBC 5 Years

We had to put a debenture in before we can borrow,

I am personaly going to move from them as they are so unhelpful

 

[bedrock]

Not sure what your problem is. The facilities would still be unsecured in the banks eyes. It's no different to a sole trader having the same facilities- he would be liable for the debt, why not a director?. Trading through a Limited Company should not used purely to avoid any personal liability. They are not asking for the guarnatee to be supported in any way with additional tangible security.

As a matter of course most lenders would take directors guarantees (unsupported) for comapny borrowing/ obligations.

How can you expect the bank to have the confidence to offer your company borrowing when you haven't got the confidence to support it. I would be amazed if another bank provided you with what you need.

 

[Big Pete]

Not sure what your problem is. The facilities would still be unsecured in the banks eyes. It's no different to a sole trader having the same facilities- he would be liable for the debt, why not a director?. Trading through a Limited Company should not used purely to avoid any personal liability. They are not asking for the guarnatee to be supported in any way with additional tangible security.

As a matter of course most lenders would take directors guarantees (unsupported) for comapny borrowing/ obligations.

How can you expect the bank to have the confidence to offer your company borrowing when you haven't got the confidence to support it. I would be amazed if another bank provided you with what you need.

You hit the nail right on the head

 

[Ukfatboy]

First of all thanks to everybody who has replied.

I cannot agree with some of the comments though

Our relationship with the bank is a commercial agreement . Over the years they have had millions go through the account. HSBC has had use of this money to fund there business etc.

We have also paid charges throughout for every transaction.

The conduct of the account has been perfect for over 5 years.

If we went bust tomorrow for the facility ( we wont ) I would argue that the bank would still be in profit out of the account.

If I'm right then the bank is just being greedy which is why it winds me up.

I would if required and have in the past supported the business by way of a directors loan.

So my argument is that every day the bank makes more money out of our account, the profit on the account over 5 years increases, they cannot ever now be in a position where they could lose on the account. So why ?

It does seem that there is no actual answer !

 

[Williams lester]

First of all thanks to everybody who has replied.

I cannot agree with some of the comments though

Our relationship with the bank is a commercial agreement . Over the years they have had millions go through the account. HSBC has had use of this money to fund there business etc.

We have also paid charges throughout for every transaction.

The conduct of the account has been perfect for over 5 years.

If we went bust tomorrow for the facility ( we wont ) I would argue that the bank would still be in profit out of the account.

If I'm right then the bank is just being greedy which is why it winds me up.

I would if required and have in the past supported the business by way of a directors loan.

So my argument is that every day the bank makes more money out of our account, the profit on the account over 5 years increases, they cannot ever now be in a position where they could lose on the account. So why ?

It does seem that there is no actual answer !

The answer is that a bank, like any other commercial organisation, is in business to make money for its shareholders.

Like any other supplier to your business, if you don't like the prices or the deal on offer....then walk away and find something better.

How would you feel if your customers demanded you give them your products for free as you had made profit from them in the past??