Monday, September 29, 2008

anyone want to explain this banks logic!!!

Credit freeze and your paycheck

Take Drew Greenblatt, president of Marlin Steel Wire Products in Baltimore. He recently asked his bank to add $175,000 to his line of credit so he could purchase steel for two large customer orders. The bank said he could get the funding, but only if he first put $175,000 into a certificate of deposit.

Posted by mark @ 04:47 PM (663 views)
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2 thoughts on “anyone want to explain this banks logic!!!

  • Here we go with another stage n this series of events. If banks want such guarantees from industry in order lend and maintain cash flow for industry they are going to kill a huge vital sector that naturally relies on credit to run and pursue business.
    This gets worse by the day. Those ridiculous home loans have got a lot to answer for.

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  • Whostolemyendowment says:

    Last year I asked RBS if they could help me with import VAT deferrment, whereby a bank helps (for a fee) to guarantee the import VAT of a shipment, so that customs clearance could go more smoothly – and I could settle up the import VAT once I have received the goods rather than have them stuck in customs while I pay up. RBS wanted me to put funds to the value of the goods in a deposit account..before they’d set up the service. I approached HSBC who I also do business banking with. They required that I put 2 x the vatable amount in a deposit account…..BUT – the question is, if I have that kind of spare cash washing around – I could just pay the [email protected] VAT up front…so wouldn’t need their help…..got blank faces to that.

    By the way the shipment was US$12,000 – so to RBS the answer was ‘Yeh right!.

    I guess we are not only returning to more restricted banking, but using Victorian rules – I hope not!

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