Richy's Random Ramblings

I’m just looking at a temporary overdraft with my HSBC Business Bank Account and I’m shocked at their fees. For a £2,000 overdraft facility (i.e. just for it to “be there” and not necessarily be used) – they are going to charge me £100 (that’s 5%) setup fee and if I do happen to use it, they’ll charge 10% interest (5.50% over base rate of 4.5%) pa on a monthly basis.

Ok, that’s for a 12 month overdraft – I did just want £1,000 for a month (31 days) just to cover the difference in having to pay for things to sell and getting the money for the items from Paypal (they’ve sold, but it takes 5 workings days to get the funds from Paypal). For a £1,000 overdraft for 31 days, it’ll still cost £20.00 (just 2% this time), but still the 10% interest rate!

Ouch!