Changing bank accounts

Neoshoegal

I currently have a business account with HSBC along with a small business loan. I'm considering changing to Abbey as it's cheaper.
Can I just change to Abbey? What would happen to the small business loan with HSBC? Or can I just have 2 business accounts? One for day to day use (Abbey) and the other (HSBC) to repay the business loan?
I try to avoid using my business account as much as possible anyway already and just have the cheques to my business paid into my personal account anyway.

martindow

I changed to Abbey from HSBC about 5 years ago. I negotiated an extension to the free banking thay offered initially but only for 6 months. I too was finding that HSBC's charges were becoming considerable.

I just opened the new Abbey account and ran the two side by side until I was sure that I had moved all standing orders and bank transfers to be to and from the new account and then closed the HSBC account. At that time the business was quite small and this was simple to do. I think that banks are now obliged to provide you with details of standing orders and so on but am not sure whether this is only for personal bank accounts. I would ask Abbey about a business loan with them. If you can move everything across that would be simpler - keeping the HSBC account open for the loan would mean that you would have to continue paying their monthly charge.

ukbill69

Loans are usually set out different from your current account, ring them up and say you are closing down your account and want to keep up the payments on your loan and see what they say.

kimbatty

I have 2 business bank accounts, 1 with the Abbey for the free banking ( I tend to use this one to clear cheques mostly ) and then 1 with Barclays as they are my merchant provider. Barclays have been brilliant but I do find their charges pretty steep at times so try to keep it to automated payments such as bank transfers when paying out to anyone. Their merchant facility has been great though and haven't had a single hitch with them in over 3 years

The accounts side was pretty straight forward as well so I wouldn't hesitate to have 2 if you can get free banking for some things