FNB - Shutting down family businesses due to their inefficiency

Hi everyone

I am heart broken and emotionally drained as I write this, but I write it in hopes, that our story helps someone else not fall in the same pit as we have done.

We app**** for an overdraft increase last year December as we had secured contracts that were in the hundreds of thousands of rands. The issue was that we would only be paid on completion of the total overall project, which would only be 6 months later, and we would have to fund the purchasing and delivery of items and products, as per accepted contracts, upfront.

As this was a lucrative opportunity for a small family business like ours, we went for it. However, before we did, we contacted FNB to ask them if we qualified and could apply for, an overdraft increase so as to enable us to fund the extra stock needed without adversely affecting our ability to pay overheads in the interim.

We app**** via online banking , got a call to verify details etc and were assured that it had been authorized and that the monies would be in our account in approx 5 to 6 working days maximum. We proceeded with the big orders, confident that we would be able to pay for everything. We commissioned custom made stock and highly specialized engineering services to meet our contractual obligations and sent off everything for export, proud of what our little team from Pietermaritzburg had accomplished.

Then month end came - no word from FNB - no monies transferred as promised - just a long waiting list of things that needed to be paid off and not a cent available for us to pay it. With the construction industry being in the state that it is in, we had a lot of late to non payments by clients as well. This, added to our non-existent money reserves, almost sank us.

We followed up again, desperately, only to be told that identification verification had failed and the case was reverted to the bank's business manager. He, in particular, unlike everyone else, was really helpful but all the good disposition in the world does not make up for Head Office's failure to service us as long term clients. We have been with FNB all of our lives - from family to business accounts!We tried to follow up and clear whatever confusion regarding verifying our director's identity caused, and we were once again, 3 months later, told to wait for another 5 to 6 working days.

As I am writing this now, five months to date of our my application, no word has been received. Our creditors are threatening to shut us down due to non fulfilled financial obligations. We cannot move a muscle backwards or forwards either way and we dread each coming day as it may bring a letter of demand reminiscent of the straw that broke the camel's back.

I called again, a different branch, in a different province, seeking assistance and clarification due to my dire straights only to be told that now, I will not be getting the increase they ASSURED ME I GOT, due to ONE of our debit orders bouncing WHICH IS THE REASON WE APP**** FOR THE OVER DRAFT INCREASE IN THE FIRST PLACE.

As if our current hell was not enough, now we have no reprieve for an overdraft increase; bank charges amounting to thousands for failed debit orders; damaged long term relationships with a majority of the creditors we deal with; have to pay HUNDREDS OF THOUSANDS in late fees, penalties and interest (FNB graciously added themselves to this list); are unable to source the new stock we need as we have lost all of our 30 day accounts with suppliers;have a depressed and extremely demotivated and demoralized staff who have given this business their all only to have to watch it sink off of the back of a promise and a commitment that FNB made to us, which was false and never materialized.

LORD HELP US.WE NEED IT NOW MORE THAN EVER.

So for all the small business owners and private individuals, I urge you to seriously reconsider who you bank with, What is a minor quick application can honestly destroy your entire life. We never would have committed to the big contracts we committed to, had we not been informed by FNB that our overdraft increase was approved. No amount of money would have motivated us to make what would have been a terribly poor financial decision without funds. This was a private sector deal, not one of these government non payment for tender etc cases, that have also has caused huge damage to the construction industry and has seen multitudes of companies shut down. Not because they were not good at what they did nor that business was bad but due to non payment by state depts for services rendered.To add insult to injury - we are sitting here with close to a month's worth of accepted new work whose total value is going to be over R300, 000.00 (works just fine for our small little company) that we are unable to purchase stock for which means we have to go back to clients who have chosen us and are willing to pay us for our services to tell them they must go boost our competitors as we cannot pay stock accounts?Heartbreaking!

All of our hard work and all the sacrifices and all of the hopes of our staff and their families - destroyed in an instant. I will let you all know when FNB comes to liquidate us for not paying thousands worth of bank charges that they have charged us for not having the money they said they would give to us, on time.

I pray none of you here and your families are ever put in such a position by a company you trusted and believed had integrity, respect and professionalism. You are on your own. Choose wisely!