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Banking facility


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5 hours ago, craig said:

 

Would you honestly contend we would be on a surer financial footing if we had a bank loan ?  I know I wouldn’t.

I think you have slightly misunderstood my original point.  I don't want to see the club in debt.  By surer financial footing I meant instead of being seen as some kind of untrustworthy basket case, the club now seems to be on more of an even keel.  

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4 hours ago, Bluedell said:

So Close are the new Ticketus. :|

A different thing, surely? 

 

For one, it doesn't seem to me that Messrs Close Bros may be 'burned' in the way that the  great Whyte lamprey did for Ticketus. 

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1 hour ago, ian1964 said:

This point:

"It’s a major backing for them from a major London banking institution. A gold star in their (the board's) direction from the city, we are once again trusted and seen as a viable business"

Was what I meant by the club being on a surer financial footing.  Hope that clears it up.  

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For a financially secure business a banking facility is merely a short term bridging mechanism to accommodate normal income variation. Reasonably, this would seem to apply to football clubs like Rangers.

 

On the other hand, if it is seen as a borrowing facility to cover sustained trading shortfalls, it is simply a means of generating growing debt. If this is the case, we are definitely not (yet) on a secure financial footing.

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1 hour ago, ian1964 said:

I think this is a really good summary and although I was surprised at us using Close, it makes sense if it is a straight forward overdraft facility.  However, for £3m surely we could have secured it against Windass instead :P

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