Business Bank Account Review - Closed Because of Weak Balance Sheet!

ollyinto

Hi,

Recently a review was done of our business bank account and we have had a letter saying it will be closed after 2 months. This is because of a weak balance sheet. The Balance sheet currently shows £100,000 loss but accounts are due to be filed in the next fortnight further reducing this loss to £70,000. The business made a substancial loss to start with but is now making profit each year, therefore reducing the company losses. We don't have or need ANY loans or lending from the Bank.

I am the director of the business and have perfect credit history. I am a director of another new company which lost £12k in the first year, now in its second year we are in profit and forecast to have made £65k (we have 16 weeks left of the second year).

I also personally own a number of rental properties all let and running profitably.

I feel that the bank have done a review and a check at companies house and seen the business with a large loss and not even looked into the business further or asked about how its going and future plans. The business will be in profit within the next few years.

I am concerned that now I need to find a new bank, but don't want to apply to them and get knocked back, The bank in question is Natwest. I must express the account is run well, never over drawn , we don't owe them any money. Its all our own capital!!! I don't see any risk to them at all!!..

Look forward to any help and advice you can offer.

Thanks in advance

jonesMUFCforever

Have you spoken to a business manager?

If you have and they will not change their minds then why not open a new bank account with a new bank.
If everything is as rosy as you state you will have banks falling over themselves to help you.