No those arrangements DO NOT sound reasonable, you should be able to
negotiate a much more competitive rate ie 1% over base rate. As for the
financial profiles of your partners; call their bluff & tell them you're off
elsewhere!
Seriously, I consider that running an overdraft for most of the year to be
one of the most objectionable elements of the new "contrick". I cannot
believe that we voted for such a mess.
I just hope that somehow we can lobby to get cash flow inproved, otherwise
any meagre payrise will disappear into the interest charged on our
overdrafts.
Disgruntled of Burnham On Sea.
-----Original Message-----
From: GP-UK [mailto:[log in to unmask]] On Behalf Of Michael Leuty
Sent: 26 February 2004 16:28
To: [log in to unmask]
Subject: Into the red
I know a little about accounting, enough to keep our practice's books in
order and predict profits and drawings to a reasonable degree of accuracy.
Until now cash flow has not been a problem, particularly with the Leave
payment early in the year. But, as I have mentioned before on this list,
under nGMS our NHS income will go down until after the end of the financial
year, and there will be no leave advance.
So I am thinking of applying for a bank overdraft to cover us until HM
Government deigns to pay us the money we are owed. But here I am much less
knowledgeable.
Our bank are proposing interest at 3% over base (this is an unsecured loan),
with an arrangement fee of £220 for a £15,000 facility. Do these fees and
interest rates sound reasonable to all you worldly-wise GPs out there?
I have also been asked to provide completed Financial Profiles for all the
partners, including details of all their income and outgoings, personal
assets, any guarantees given, and employment and income of spouse.
Personally I regard this as colossal cheek. Why they should need to know the
date on which one of my partner's husbands was appointed as an ENT
consultant, before they can grant us an overdraft of a measly £15k I do not
know. Is this sort of thing regarded as normal, nowadays?
--
Michael Leuty <[log in to unmask]>
|