"The Captains Nemesis" wrote in message
...
On Tue, 16 Sep 2003 01:18:18 +0100, "Donal"
wrote:

That is a very simplistic view. It really depends on your expenditure,
doesn't it? After all, if you had no expenditure, why would you need an
overdraft?
Hey, I'm talking to a simpleton aren't I?

That's a feature of Usenet. I am whatever you believe me to be.


Oh and if you have no expenditure, you're doomed to remaining small

The average overdraft tends to be the equivalent of about one month's
turnover. Let's say that is about 5 months profit. Instead of having the
OD, a small business could just wait the 5 months before spending the money.
After that, all growth is just 5 months later than it would have been, and
the costs are lower.

A business with an overdraft is also very susceptable(sp?) to recession and
rising interest rates - whereas a company with money in the bank can see its
costs drop (or interest income increase) during a recession.


Your success probably owes more to luck, than to judgement.

Quite possibly. But you know what they say about luck.

Yep, and I completely agree with them.


Regards


Donal
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