Host denied bigger loan
Barclays Bank has told a licensee it's no longer operating overdrafts for pubs.
Chris Adshead's case comes amid claims that major banks are refusing to lend to licensees, despite the massive bailout by the taxpayer. The banks have denied they have such policies.
Adshead asked Barclays to extend his overdraft from £10,000 to £15,000 until this month.
"This was refused point blank. We were told we were lucky to have our current overdraft as Barclays are now not operating overdrafts for pubs," said the Punch lessee of the Engine Inn at Grange-over-Sands, Cumbria.
His current overdraft ends in July. "Whether we will be able to keep it going we don't know."
Adshead said: "We were offered a £5,000 loan, payable over a year at 20% interest — not an option for us as next winter we will no doubt be in a worse situation. I now have a very large credit-card bill, but it's not anywhere near 20% interest."
A Barclays spokeswoman denied that the bank had stopped offering overdrafts to pubs, adding: "Every overdraft for every customer is looked at on an individual case-by-case basis."
