Banking on disaster

So LloydsTSB have announced the expected losses at HBOS and also mentioned their own profits dropped.

Last week I received a letter from by "Relationship Manager", whatever that is meant to make me feel, saying the bank is concerned to see my turnover has dropped. They also wanted to know if they could do anything to help.

So I ring the woman I am having this relationship with and mentioned that external shutter sales tend to be a bit seasonal. Why does no-one buy there beloved a set of shutters for Christmas? They'd thank you for it, or if not, I would. I also told her the good news that I'd won the big contract down in Yeovil and what potential that gives the company. I also mentioned that it would be a help for the company in these present economic times if we could have an overdraft for the next 8 weeks of £5000.

She immediately decided the maximum should be £3600. So off she runs to do credit checks etc.

I heard on Friday, dspite the fact that there is a confirmed order from a major Plc which they have seen, an agreement to personal guarantees form me and the other director, who only has a 15% mortgage on a £250k property, and with good credit references coming back, they have decided not to give us the overdraft at this time.

They are willing to consider it again in a few weeks time when the cashflow has picked up, i.e. when we have plenty of money.

Well I'm glad to hear that I am such a bad risk that a bank who bought a £10bn loss, lost 80% of it's profits and 40% of it's share price in one day, is being proppped up by the tax payer and will have to use the governments debt guaratnee scheme, feel I'm the one not to be trusted.