OCR A2 Economics Unit F585 June 2013 | AQA A2 BUSS4 | AQA AS Applied BS03 | IB B&M Royal Danish Bearings | OCR AS Business F292 | OCR A2 Business F297 | OCR AS Applied F242 | OCR A2 Applied F247
Download a printable order form for your revision toolkits
Sources of finance - the bank overdraft rip-off
We got a letter from the Bank of Scotland last week offering us a very generous bank overdraft for the tutor2u business…
Not that we asked for an overdraft. We’ve had a positive cash balance since day one and I can’t really imagine why we would need a bank overdraft now as part of our financial structure.
Still it was nice to get the offer…until I looked at the rate of interest on offer.
A quick reminder. The Bank of England base rate is 0.5%.
The Bank of Scotland offer for a bank overdraft? Go overdrawn by up to £50,000, on which the interest rate will be 17.5%
That’s 17 percentage points higher than the base rate - for a low-risk, profitable business that has never been in debt. How generous.
It seems we are not alone. The media feature lots of small businesses that are complaining that the fall in the base interest rate has not been followed by a reduction in the overdraft and loan rates charged by the banks. The chart below illustrates that. So much for the banks wanting to do their bit to help corporate Britain pull us out of recession
Business response to the economic environment: zero hours contracts [18 May 2013]
3 Businesses That Have Thrived during the Economic Downturn [13 May 2013]
Shocker or Cracker? BYOD and find out [29 Apr 2013]
BUSS4 Revision: Economic Environment for UK Businesses [27 Apr 2013]
Strategy in a time of austerity & poverty - three retailers tell their story [13 Apr 2013]
Political Risk: Global location and PEST analysis [22 Mar 2013]
Videos to support GCSE Edexcel Business Break Even, Margin of Safety and Profit [27 Feb 2013]
What do we learn from football ‘rich lists’? [1 Feb 2013]
Do businesses have a responsibility beyond profit? [26 Jan 2013]
BUSS1 - Profit and Breakeven Calculations [8 Jan 2013]
Revision Presentation - Calculating and Measuring Profit [30 Dec 2012]
Revision Presentation - Raising Finance for a New Business [30 Dec 2012]
Revision Presentation - Risks and Rewards to Enterprise [30 Dec 2012]
Revision Presentation - Adding Value and the Transformation Process [30 Dec 2012]
Starbucks brews up big tax breaks [16 Oct 2012]
Mitigating Business Risks in Uncertain Time [20 Sep 2012]
Welcome to our Revision App! [28 Aug 2012]
Growth Accelerator and tutor2u - the initial strategy session [10 Aug 2012]
Economic Influences in action - austerity hits IWB maufacturer Promethean [27 Jul 2012]
Business Studies at the Movies - Cut Out the Middleman! [14 Jul 2012]
The buck stops here or here or here. [3 Jul 2012]
Reflections on Bankruptcy [15 Jun 2012]
Contingency planning and the break-up of the Euro [13 Jun 2012]
Revision Presentation - Measuring and Increasing Profit [17 May 2012]
Revision Quiz - Sources of Finance for a Startup [12 May 2012]
Takeovers and Mergers - the failed takeover behind Clinton Cards’ Collapse [9 May 2012]
Marketing analysis: the UK supermarket battleground [3 May 2012]
Revision Presentation - Managing Risk [7 Apr 2012]
Revision Presentation - Business & Interest Rates [7 Apr 2012]
Revision Presentation - Unemployment & Business [6 Apr 2012]
Revision Presentation - Business Cycle and Economic Growth [6 Apr 2012]
Revision Presentation - Retrenchment [4 Apr 2012]
Game Over? [13 Mar 2012]
Tata & Jaguar Land Rover - Culture and Strategy [11 Mar 2012]
Pampering - demand booms as consumers seek an affordable treat [4 Mar 2012]
Lesson video : Franchising for beginners [4 Mar 2012]
Economics for Business: Is an economic recovery underway? [28 Feb 2012]
Buying-in to the Facebook culture [5 Feb 2012]
Still more praise for the “John Lewis model” [17 Jan 2012]
Strategies to revive the High Street: Mary Portas reports [13 Dec 2011]
The Rise and Fall and Rise of Gerald Ratner [27 Nov 2011]
International operations decisions - Adidas trainers for $1? [26 Nov 2011]
Cut price cup cake deal goes wrong…... [23 Nov 2011]
Unilever hit by rising costs [6 Nov 2011]
Banana Smoothies & Interest Rates [5 Nov 2011]
Batten down the hatches - strategies for the next downturn [24 Oct 2011]
Shoppers switch stores as income patterns change [11 Oct 2011]
Profits dive and put pressure on liquidity - the Distress Monitor [29 Sep 2011]
The puzzle of rising profits [5 Sep 2011]
Tesco pulls out of Japan [4 Sep 2011]
Risk-free Curry? Searching for the Right Growth Strategy [29 Aug 2011]
Luke Johnson on sources of finance for a startup [29 Aug 2011]
Entrepreneurs and Calculated Risks [25 Aug 2011]
Evaluation in business essays? Its just like going on a date… [22 Aug 2011]
Samsung seeks a ban on Apple products [1 Jul 2011]
Your suggestions for new Business Studies resources & training [9 May 2011]
HMV Strategy - Death of a Billion Downloads [24 Apr 2011]
Is the golf business coming out of the bunker? [7 Apr 2011]
Recession? Hair today, gone tomorrow [6 Apr 2011]
The UK Economy - Economic Growth GDP [15 Mar 2011]
The UK Economy - Unemployment [13 Mar 2011]
Partners in profit - the JLP way [10 Mar 2011]
Stuff the banks - John Lewis issues a retail bond [6 Mar 2011]
The Profit Margin Bloodbath of UK Recession [6 Mar 2011]
Introducing a new kind of business organisation - the benefit corporation [17 Feb 2011]
CSR - What is “Creating Shared Value”? [16 Feb 2011]
Dont make a hash of it! Using hash tags on Twitter [15 Feb 2011]
Michael Porter - Shared Value and the Limitations of CSR [15 Feb 2011]
Sources of finance - the attraction of franchises [8 Feb 2011]
CSR - The Classic Milton Friedman Clip [5 Feb 2011]
The Year of Corporate Philanthropy [31 Jan 2011]
How technology is changing the recruitment process [17 Jan 2011]
Q&A - What is “profit quality”? [7 Jan 2011]
BUSS1 Revision Quiz - Sources of Finance for a Startup [13 Dec 2010]
Starter / Plenary Activity - The Business Studies Categories Game [6 Dec 2010]
Dominos Pizza - Growth & Strategy (Part 3) - Smart Marketing [26 Nov 2010]
Dominos Pizza - Growth & Strategy (Part 2) - Innovation, Service and Smart Operations [26 Nov 2010]
Dominos Pizza - Growth & Strategy (Part 1) - Driving Competitive Advantage [26 Nov 2010]
Euro Disney - an HRM & Finance Nightmare? [24 Nov 2010]
Liabilities - firms worry about what they owe [24 Nov 2010]
Recession-proof production at Fiat [20 Nov 2010]
JCB - A Great Case Study for Business Students [19 Nov 2010]
Cash flow Clue-doh! The Mystery is Revealed… [2 Nov 2010]
Start-ups - a surge in new businesses post recession [2 Nov 2010]
Revision Games - Sources of Finance Definitions [1 Nov 2010]
Profits up at Amazon - but so are costs [22 Oct 2010]
Bonus system to encourage safety improvements at BP [20 Oct 2010]
tutor2u on Smarta - An Interview with Jim [18 Oct 2010]
Google, Profits and Diversification [16 Oct 2010]
Insights from an Entrepreneur - Fraser Doherty (SuperJam) [10 Oct 2010]
The Frost Report does Stakeholders [9 Oct 2010]
Culture & Change - The Challenge Facing Nokia [27 Sep 2010]
My Visit to Smarta.com [27 Sep 2010]
Who ate all the pies? [17 Sep 2010]
Sources of finance - bank loans down by £28 billion [15 Sep 2010]
Businesses prepare for the double-dip [13 Sep 2010]
Can small firms shrug off their recession trauma? [2 Sep 2010]
A beginners guide to GDP [30 Aug 2010]
Recession Strategy - Manufacturing Emerges Leaner and Fitter [25 Aug 2010]
Tutor2u on Facebook [24 Aug 2010]
blog comments powered by Disqus
Business Studies Revision / Exam Coaching Workshops Coming Up:
GCSE Business (AQA Unit 2 & Edexcel Unit 3)
Thursday 24 April 2014 - Birmingham
Friday 25 April 2014 - London (Stratford City)
AQA AS & A2 Business (BUSS1 & BUSS3)
Monday 20 January 2014 - London (Stratford City)
Tuesday 21 January 2014 - London (Fulham Broadway)
Wednesday 22 January 2014 - Bristol (Cribbs Causeway)
Thursday 23 January 2014 - Birmingham (Star City)
Friday 24 January 2014 - Manchester (Salford Quays)
AQA AS & A2 Business (BUSS2 & BUSS4)
Tuesday 25 March 2014 - London (Stratford City)
Wednesday 26 March 2014 - London (Fulham Broadway)
Thursday 27 March 2014 - Bristol (Cribbs Causeway)
Friday 28 March 2014 - Birmingham (Star City)
Tuesday 1 April 2014 - Newcastle (Metro Centre)
Wednesday 2 April 2014 - Leeds (The Light)
Thursday 3 April 2014 - Manchester (Salford Quays)
Post-Easter (BUSS1/BUSS2 Combined & BUSS4)
Monday 28 April 2014 - London (Stratford City)
Tuesday 29 April 2014 - London (Fulham Broadway)
Wednesday 30 April 2014 - Bristol (Cribbs Causeway)
Thursday 1 May 2014 - Birmingham (Star City)
Friday 2 May 2014 - Manchester (Salford Quays)
Try some of these superb starter activities for Business Studies:
- Anagram Countdown
- Beat the Teacher
- Bellwork
- Budget Basket
- Memory Challenge
- Loop Cards
- I'm the Question
- Catchphrase - Say What You See!
- Consider All Possibilities (C.A.P)
- i-Teach
- Teacher Talkabout
- Perfect Recall
- Pass the Buck
- What would you have invented?
- These are a few of my favourite things
- Set Your Students the 15 Word Challenge
- Topic Tennis
- What Why Depends - Developing Thinking Skills
Join our Business Teacher Email Newsletter
Join our community of over 15,000 Business Teachers & Lecturers who receive our Business Teaching Resource Newsletter
| Business Studies Blog | Economics Blog |
| Geography Blog | Politics Blog |
| Give It A Go! Blog | Sociology Blog |
