Loan Application

hunkydory1

I've applied for a loan with a bank. Long process involving detailed business plans and cash projections.
Initial response from business manager was positive. This business manager is also double-jobbing as the branch manager. My partner and I were called in on Monday. We signed for business accounts etc and were brought down to a QFA to look at Keyman insurance etc..The business manager also took my solicitors details.
We were told that Dublin had come back with a number of queries and that the manager was in the process of answering them. I asked whether the application was brought to a credit committee. Was told not. Was told that as the loan was being applied for over computer system and not a formal credit committee due to the relatively small amount of money I needed to borrow. Manager told us the initial reaction was positive and that hopefully it will happen.
Spoke to manager today. Was told that the info requested will be sent to Dublin by Monday and a decision would then be given. Was sort of dejected when I heard 'Dublin' would have to come back with an answer. My worry is that it's just another case of branch level optimism about to be shot down by powers that be.
Any opinions?

MyPerfectCousin

"Dublin" is probably the loan department of the bank. I'm pretty sure centralised loan departments approve all loans down to second hand car loans and personal overdrafts these days. The local bank manager can recommend approval but I think the decision is out of their hands. This is just based on my experience as a borrower, nothing else.

TheCostumeShop.ie: Ronan

Unfortunately this is typical, the account manager is just a pawn and really has no influence over the loan process at the amounts in question. They are encouraged to have lots of meetings for the sake of meetings, because they have to be seen to be doing something.

That doesnt mean it wont be approved, just that it's in the hands of some faceless people who you can't get on the phone to speak to.

Also the idea of paying keyman insurance while they decide whether or not to approve the loan is just more reminiscences from the boom years and the do it our way or not at all banking scene.

hunkydory1

It really is a pain waiting for a decision. Big influence on my family and I's future.
Arrrrgghhh

TheCostumeShop.ie: Ronan

You should apply in at least four banks, it's not like you'd take a first offer rejection very seriously anyway. Waiting for other people to do stuff will never make you rich. Things like a bankers mood on the day may have more influence than your months of business planning and preparation. They are only human (ish) after all.

EIREHotspur

think I asked this before and it was answered as a no no because they were not there for Business loans but why don't people go to Credit Unions starting off?

These are not ordinary times and with no credit in Banks I would start a Business with Credit Union and get going.

hunkydory1

Got approved just before Christmas..

But my god what a torturous process

maxer68

hunkydory1 wrote: »

Got approved just before Christmas..

But my god what a torturous process

Has to be Ulster Bank:D - Yes they are giving business loans, but biy do they make you wait and they check EVERYTHING!

But the good news is if you need more and your figures stack up, the next time is easier.

hunkydory1

AIB actually. Surprising as everyone seems to think they are not lending.