Lloyds TSB problem and use of accounts

RetroGirl

Hi,
I am posting for a friend who has just had her business overdraft stopped by Lloyds TSB for no reason, even though the overdraft was agreed just last month.
Now she is having problems with bills not being paid from that account.
What we need to know is if she can use her personal account (also Lloyds TSB) for business bills until she gets things sorted. She has a ltd company that has been active for 7 years.
Thanks

Claire

jonesMUFCforever

She can do this if funds are available BUT there has to be a reason.
Has she spoken to her business manager at all?

Is the account we are talking about here a Ltd Company?

What she will not be able to do is pay company money into her private account.

RetroGirl

jonesMUFCforever wrote: »

She can do this if funds are available BUT there has to be a reason.
Has she spoken to her business manager at all?

She is expecting a phone call from him tomorrow

Is the account we are talking about here a Ltd Company?

Yes

What she will not be able to do is pay company money into her private account.

So to pay any bills for equipment etc will have to come from personal money or profits from the company?

Thanks for your help

jonesMUFCforever

Until it has been sorted then she will have to use personal funds to pay business funds.
Did she get the phone call from the business manager.

thenudeone

A limited company and its owners / directors are completely different legal entities, even if there is only one shareholder and director.
Mixing the two could have unforeseen implications (eg: tax, VAT).

The simplest way might be for the owner to lend the company some money, which the company uses to pay its suppliers. At least that way it's relatively clean. But I am not an expert in business financing or taxation, so I couldn't promise that that doesn't create other problems.