I have been successfully running my own business now (sole trader) for a year. I have been lucky enough to do it without borrowing money or overdrawing my bank account. Recently they discovered that I have been using my current account as a business account. As I am a sole trader there is very little money going in there for materials etc. It is pretty much my money and the tax I am saving. Anyway my bank manager told me It is LAW that I have a business account and mustnt use my current account for such transactions. So I agreed and asked them to open a business account for me. After sitting there for half an hour or so, they finally told me it was DECLINED. When I asked why, he said he was unable to give me a reason as it was all decided by the computer. I feel like the bank is telling me they dont want me to run a business.Anyway since then I have discovered it is NOT law that I have a business acoount and that I only have to be able to say what is business and what is not.This is so unfair, what other options do I have? At the moment Im trying other banks but Im waiting for a reply.I think of all the businesses they have refused to help during the recession which have gone out of business (1 in particular had full order books) Who the Hell do they think they are?
That s an easy one, take your business (current account) elsewhere and open up a business account with the new bank.If you don t like the decision the bank has made then you can take it to the banking ombundsman but ultimately it is the banks decision (a case of their house, their rules).The only reason the banks insist on separate accounts is so they can charge you more.The believe that business accounts generate more work for them (amount of transactions) and therefore bang you with more charges.If you read the terms and conditions of your current account there is probably something in there which says you can t use it as a business account.Just take your business elsewhere.
If they told you that you had to have a business account and you didn t you could take action. The fact that you have now had a bank account declined actually means they will have affected your credit rating.I suggest you do some solid research into what you do and don t need to do so that you are prepared with the facts.
