Acorn's First Overdraft

"When we got the contract, we went to Ferranti for the chips", recalls Hermann Hauser, now CEO of Amadeus Capital Partners, then CEO of Acorn Computers, "their first batch of chips didn't work and this became national news - there  were even questions in the House of Commons about why schools didn't have their BBC Micro."

Because of the delays Acorn had to ask for its first overdraft. "I went to see Mr Knight at NatWest and asked for an overdraft, and he said: 'Oh isn't it jolly good to see these young people start companies', and then he did his due diligence by asking: 'Which college did you go to?' and I pointed out of the window and said 'That one across the road',  which was King's College, and he said: 'Oh jolly good', and he gave me £10,000 with no business plan, no nothing. Later I went back and asked for £20,000, then £50,000 and got it with no problem."

But it still wasn't enough to tide Acorn over. "With the Ferranti problem affecting us badly, and being unable to touch the money we had been sent by customers because it was in an escrow account, I went and asked for an overdraft of £1 million," recalls Hauser.

That set the cat among the pigeons. "All hell was then let loose. £1 million was way over Mr Knight's limit, and it had to go to regional headquarters," remebers hauser, "they simply couldn't understand it. We were totally over-trading and we had no assets at all.  NatWest held a major investigation."