The Banks - again

Another couple of meetings with banks this week.

For rock solid asset backed (60% of value) loan they are generally looking for a minimum of 2% margin and typically now on LIBOR not base - so with LIBOR only falling to 3.38% on Friday after the base rate cut you're looking at 5.58%. For unsecured money (still needs a minimum directors' guarantee) rates quoted are anything from BASE + 5% - Base + 12%.

The shift to LIBOR is not too suprising, remember this is the rate at which banks lend to each other (when they do) and also the government money into the bank is reported to be lent at 12% so they are being squeezed.

Best news is if you are a vet - the banks will probably lend you 100% of your cost for a new surgery at probably a margin of 1.5% over LIBOR or even base. The banks have always loved the white coat professions and things haven't changed there.

News from Hub members still mixed - some reporting strong sales, others getting through pitches but implementation not until the new year, others finding things tighter. The main message is people are holding onto cash so get tight on your debtors and remember historically January is the worst month for insolvencies so review your clients carefully.

On a final positive note - the best thing to do at the moment is remind your customers you exist and are still around foir business - make that phone call that you have been meaning to do, they'll appreciate it.