New LTD Company Banking Potential Overdrafts, loans

[Deivids100]

Hello everyone

I have been running an ebay business for 2 years as a sole trader. Around 80k in turnover for the last year.
Im opening a new LTD company and wanted to ask which bank would be best for overdrafts?

So my question is which bank offers the highest overdraft for new LTD.
What factors affect the amount of overdraft they offer

I have £10k worth of stock, and 5-10k in cash that I can gather around.

If I opened a business account and told them I want to deposit £10k would the loan be larger than if I opened it with £1k. What if I managed to put in £20k.

Would I need a business plan?

The more money I can get from the bank the quicker I can buy more stock to sell to grow faster hence I need to maximize my available funds.

Any help regarding overdrafts or loans from the banks would be much appreciated.
( I am aware there are other places to get funding but im just asking in particularity about banks)

Thanks

 

[BLP]

You will need a business plan. Rather than looking for overdrafts, I would look into small business loans. You'll need your business plan for that too.

 

[Mark T Jones]

Many banks will require a business plan just to open an account

Any lender will require one to lend you money.

the availability of overdraft/loans will be a factor of your business strength, your personal credit history and and secondary security available - there s no 'best or worst' it's all about your specific business case.

My understanding is that e-commerce platforms like E-bay have there own credit/loan facilities (can't pretend to know anything about them)

That said, best advice always is to look at ways to get going without borrowing money

 

[Alison Moore]

Yes you'd most likely need a business plan these days to open an account with one of the high street names, and they are very reluctant to give any business credit until you've built up a trading history with them. A few years back banks would give you overdrafts based on a brief conversation, but those days are gone and they have to ensure that they loan responsibly, so I'd be very surprised if you got on overdraft as standard. Organisations like Cashplus (who are soon to become a bank) will give you unsecured credit for a limited time, but their interest rates are very high.

 

[Mr D]

Many banks will require a business plan just to open an account

Any lender will require one to lend you money.

the availability of overdraft/loans will be a factor of your business strength, your personal credit history and and secondary security available - there s no 'best or worst' it's all about your specific business case.

My understanding is that e-commerce platforms like E-bay have there own credit/loan facilities (can't pretend to know anything about them)

That said, best advice always is to look at ways to get going without borrowing money

Paypal working capital has been around a few years, used by ebay sellers.
However ebay are in the process of switching sellers to another payment processor this year - resulting in businesses having maybe a lot less money flowing in via paypal.