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
FOR MORE REVISION SUPPORT FROM THE TUTOR2U TEAM...
Use the following class codes to join our Zondle revision classes:
Economics: AS Micro 290-66327 AS Macro 290-66328 A2 Micro 290-66329 A2 Macro 290-66330
AQA AS/A2 Business: BUSS1 290-66325 BUSS2 290-66326 BUSS3 290-66323 BUSS4 290-66322
The cameras went behind the scenes at one of tutor2u's exam coaching & revision workshops this summer...
Discover more about our intensive exam coaching & revision workshops desiged to prepare for exams in May & June 2015:
|PowerPoint Lesson Activities||Teacher Conferences & CPD Courses|
|Exam Coaching & Revision Workshops||Pre-release Case Study Toolkits|
|A Level Economics Teaching Support||Resources for Business Studies|