IVA and business bank accounts

kennelman

Hi,
I may have to start an IVA and I just have a few questions. I currently run my business as a LTD company but the property is owned as a partnership with my wife and the LTD company pays us rent.
If I do an IVA:

1) The bank the Ltd company banks with will be In the IVA because of a 10k overdraft........what are my chances of opening another Ltd company bank account with another bank?

2) The premises are financed with another bank where we have our partnership account. As their loan is secured on the property they will not be in the IVA. Can I still have that bank account open? Do I legally have to tell them about the IVA? Could they withdraw their loan and force me to sell?

I will of course be asking these questions to my IP but I was just wondering what other people's experiences were.

Thanks

kennelman

I've just read on another site that HSBC trawl the insolvency register and close down your bank account If you're on it. My commercial loan ( secured against the business premises) is with them and would I not need the account open to pay the loan?

CKhalvashi

We’ve used HSBC for some high-risk administration buyouts before now, so I may be able to offer some advice and pointers. Again, even though I am qualified to do so, I don’t advise company directors for gain and this is for discussion purposes only.

The first question is ascertaining exactly what your business does. If it’s in an HSBC specialist area, then they may be able to offer industry-specific advice. (Assuming from post 2 that you bank with HSBC)

If you’re running a B2C, how heavily are you marketing and what is it costing? We never marketed anywhere, mainly by word of mouth, and cheap methods that paid for themselves over and over again were mentioned (like internet marketing at 9p per 1000 implants)

Details of turnover and expenses, what these expenses are, hours worked, number of staff, equipment leases etc etc etc.

Why you feel that you have got into the business situation that you have. If you can justify it (e.g 2 cars needed replacing), then there’s a reason for it. If you cannot (e.g it’s been used to bridge the gaps in finances), then there may be a problem.

Post this up, and if possible a personal and company SoA, and I’ll be able to advise further.

CK

kennelman

When you say there cold be a problem do you mean HSBC could withdraw there ommercial loan?

CKhalvashi

kennelman wrote: »

When you say there cold be a problem do you mean HSBC could withdraw there ommercial loan?

A loan is not the same as an overdraft, as it is not repayable on demand. I mean with your own company finances. In general, if there is more going in than coming out, with no reasonable explanation, there is concern over this from any point of view.

CK