Business Loan

freeee

Under 7.5 of the agreement it says:

Unless otherwise agreed by the bank you shall hold a current account with the bank and all amounts due will be debited from that account. If you don;t maintain such an account with the bank, the bank may add to your account any interest that is to be paid by you but which is not paid on the date it is due payment.

Does this mean i have to keep the current account or can i change and just pay into the loan agreement?

Thanks in advance!

Savvy_Sue

My understanding of this is that you don't HAVE to have the current account, but if you don't, they'll add to your loan account any interest on payments you make late.

BUT as it says "Unless otherwise agreed" I would double check with the bank before closing your current account: they may decide to withdraw the loan at that point.

If you want a different account but the bank won't let you close the current current account, I would open the new account, and pay into the current current account whatever's needed to service the loan. Sure, that's two accounts to keep an eye on, but I'm sure they can't stop you doing that.