Natwest trying to convert Buisness Overdraft to loan

[joba1984]

Hi Guys,

 

 

I have a business overdraft of £13k.

 

 

We have been sat at the deep end of it for about 2 years now.

 

 

However business has started to a bit more profitable and we are slowly starting to eat at it.

 

 

Natwest usually renews the overdraft every september for a cost of £250.

They renewed it last year but because of things being tight back then i stopped taking a wage to help boost cashflow.

This meant i couldnt pay my personal unsecured loan i have with natwest.

 

 

I have a personal guarantee on the overdraft and they have now sent me a letter saying they are only renewing it till march 1st.

They want my lastest company accounts which wont be finalised until june and are demanding i start repaying my personal loan as it is linked to my business account.

 

 

I wasnt under the impression that the two accounts could be linked together.

Its a limited company if that makes a difference.

 

 

They are talking about possibly turning the overdraft into a loan.

But they want something sorting or they will turn it over to the debt collection department.

 

I just wanted to get some advice as to how i should proceed.

 

 

If they remove the overdraft will they persue me for the full amount in one payment which i cant pay.

 

 

Also can they take my house? or will they try and arrange a payment plan to pay the money back?

 

Im hoping you guys can help me.

[dx100uk]

don't be scared of debt collection!

 

 

I'd let it run.

 

 

got PPI or charges involved anywhere?

[joba1984]

Thanks for the reply. We get quarterly charges on the overdraft and have been getting charges on the personal loan. My main concern is the house. how easy is it for them to take it? and would they negotiate a payment plan for the overdraft or just demand the full amount? I could go back to taking a wage to cover the personal loan but then it would slow down the cashflow increase and hit the profits. I would rather run my household finances tighter with the partners wage and have my £1k per month wage left in the business as that will effectively clear the over draft in a year.

[AndyOrch]

Dont agree to convert it to a loan...keep it as an overdraft...they cant without your consent.Why not negotiate with them and offer your proposals...that you could clear it in a year...if they will honor the facility for that period?

[havinastella]

Natwest have form for calling in all debt and leaving you with nothing.

 

I would look into this very carefully.

[cfs_too]

Hi,

If you have your personal account with Natwest (or even joint account with partners wages going in), please consider changing it to one that's is outside of the group.

This is a preventative measure to stop Natwest taking arrears from any perosnal accounts.

There lots of advice on other threads by the more experienced members about changing to a differnet bank (and group) prevent this. There are many different threads which cover arrears and 'offsetting', I think you have a head start and a little time to plan.

Not trying to scare you, just hoping to make you aware of the practices of the banks before it's too late, most of us who came here for advice have been stung early, and only discovered the offsetting rules after it's happened.

Me_too

[Conniff]

Agree with the above. If you have a personal account with Natwest, move it elsewhere. Natwest will empty both accounts, close them and bill you.

[joba1984]

Thanks for the heads up guys. Luckily we have a lloyds basic account setup and the wifes wages go into that so theres nothing in our personal account now with Natwest as i expected they would do something like that. Im just trying to work out what the process is gonna be if they remove the overdraft. Will they be demanding a lump sum payment or will they negotiate a monthly payment plan. Just trying to plan in my head whether my house is gonna be up fo grabs or not.