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Boi business loan

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  • 27-07-2016 2:01pm
    #1
    Johnoshamrock
    Registered Users Posts: 10 ✭


    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


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    #2
    Bandara
    Registered Users Posts: 3,282 ✭✭✭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


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    #3
    Johnoshamrock
    Registered Users Posts: 10 ✭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


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    #4
    Buttercake
    Registered Users Posts: 539 ✭✭✭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.


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    #5
    Bandara
    Registered Users Posts: 3,282 ✭✭✭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 ?


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    #6
    mrawkward
    Registered Users Posts: 498 ✭✭mrawkward


    2:1 security... pretty standard fare.


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    #7
    Bandara
    Registered Users Posts: 3,282 ✭✭✭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


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    #8
    mrawkward
    Registered Users Posts: 498 ✭✭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.


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    #9
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭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.


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    #10
    Bandara
    Registered Users Posts: 3,282 ✭✭✭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


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    #11
    mrawkward
    Registered Users Posts: 498 ✭✭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!


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    #12
    Bandara
    Registered Users Posts: 3,282 ✭✭✭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.


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    #13
    mrawkward
    Registered Users Posts: 498 ✭✭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.


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    #14
    Buttercake
    Registered Users Posts: 539 ✭✭✭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.


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