Question about DD for business bank accounts

TCM_3

Strange question time!
Have a direct debit due out of business account on Monday which i naturally assumed would come out on Tueday because of the banks being closed however I have just had a conversation with the bank who have informed me that it may possibly be presented today, however, my credit card terminal transactions from today (Thursday) until Tuesday will not show into the account until next Wednesday or later.

In which case this leaves me with not enough in the account to cover the DD so I asked could they extend my overdraft by £500 for a week to allow for the holiday. No.

If I lodge cash straight in on Tuesday morning 1st thing and the DD is due to come out Tuesday, would that cover me? I cannot see any other way round this but am going to have credit card and cash transactions Thursday, Friday, Sat and Mon which will possibly not get into the bank in time because of the holiday! Any suggestions or thoughts would be appreciated!
Thanks, sorry for being long winded!
T

JamesJamz

DD's can come out any time of the day, some will even come out dead on 12:01PM. Your best bet will be to get the money into the account today, or even on saturday (if theyre open)

If you lucky and the DD doesnt come out untill later on the tuesday, you could rush to the bank in the morning with the cash...

TCM_3

Thanks!

I though I was on the ball by asking to extend the O/D for a few days but no go! Banks seem to be a law onto themselves at the minute!

JamesJamz

TCM wrote: »

Thanks!

I though I was on the ball by asking to extend the O/D for a few days but no go! Banks seem to be a law onto themselves at the minute!

I know a few banks seem to take 5 working days to authorise an O/D, which may be the case for your bank.

bordercars

if there is not enough funds can you speak to the dd recipent and cancel it then restart it allowing for this scenario in future.

TCM_3

Thanks bordercars! The silly thing is there would be more than enough funds in the account if the credit card transactions went through at the normal time yet I'm told that because it is a holiday they may take up to a week to reach the account instead of the normal one or maximum of 2 days.
Seems banks can take money out at a quicker rate than they want to pay it in!