overdraft or loan

I

irishpat

Guest
hi all

first time poster...have an od with bank at present for 40k...bank now want me to take a 3 year loan instead of the odraft. now if i take the loan that goes on the irish credit burea and if i miss a payment im screwed. where as im not too sure what they can do about the overdraft side. they are just scared as im an estate agent but im not too worried...my gut feeling is not to sign...i also am a sole trader so im not a ltd company (obviously!!) any thoughts, what would you do....?
 
irishpat said:
hi all

first time poster...have an od with bank at present for 40k...bank now want me to take a 3 year loan instead of the odraft. now if i take the loan that goes on the irish credit burea and if i miss a payment im screwed. where as im not too sure what they can do about the overdraft side. they are just scared as im an estate agent but im not too worried...my gut feeling is not to sign...i also am a sole trader so im not a ltd company (obviously!!) any thoughts, what would you do....?
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One advantage of a loan over an od (apart from haveing a proper repayment schedule) is that the bank can call in your od (as in cancel it) at any time.
 
Interest rates on loans are lower. Also, I would be afraid that if you took out the overdraft that you might tend to rely on it from time to time. Whereas with a loan you borrow one some and repay it.
 
hi all no there is no lien or guarantee at all.......
 
if you have a €40k overdraft which the bank wants to convert to a loan, does that suggest that you are not reducing the size of your overdraft at the minute.? If that is the case, and you refuse to sign up for a loan, is there anything to stop the bank calling in the O/D?
 
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