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Business Bank Charges
funkysam50
Posts: 6 Forumite
Can someone help us please?
My Fianc! had been running his business for 30 years, he was contracted to a particular Company for 12 months. The Company offered him full-time employment which he accepted. He was told by Companies House not to trade for 3 months before applying for a strike off. His salary and any direct debits have now been transferred into our joint account. However, he has an overdraft of £10,000 with the bank. He met with the bank and explained the situation as he didn't want to incur anymore bank charges if necessary. The bank told him that when money (his wages) stop going into the account they will turn the debt into a loan?? In the meantime the charges continue. What can we do? There is no guarantee on the loan
My Fianc! had been running his business for 30 years, he was contracted to a particular Company for 12 months. The Company offered him full-time employment which he accepted. He was told by Companies House not to trade for 3 months before applying for a strike off. His salary and any direct debits have now been transferred into our joint account. However, he has an overdraft of £10,000 with the bank. He met with the bank and explained the situation as he didn't want to incur anymore bank charges if necessary. The bank told him that when money (his wages) stop going into the account they will turn the debt into a loan?? In the meantime the charges continue. What can we do? There is no guarantee on the loan
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Comments
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What can we do?
What do you want to do? The company has a debt and it has no income. If the debt is not repaid and no guarantor exists then you would expect the bank to push the company into administration and see what assets exist to repay it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thank you for your help.
We want to stop anymore interest charges being added on and close the account if possible. Can they turn the debt into a loan?0 -
funkysam50 wrote: »Thank you for your help.
We want to stop anymore interest charges being added on and close the account if possible. Can they turn the debt into a loan?
Then pay the overdraft off.;)
You can't seriously be suggesting you hope the bank will just let him get away with £10k of their money?
Expect the bank to appeal against any application to strike the company off whilst they are owed money, meaning Companies House will continue chasing him for the annual fee and submission of annual accounts.
The bank will also not allow him to close the account whilst there is an outstanding balance.
If the account is not regularly credited, then expect the bank to call the overdraft in.0 -
I wish we could pay it off......Not suggesting him getting away with anything. Just trying to stop incurring anymore interest/bank charges.
Interesting that the bank will appeal against the application for a strike off - useful information.
Many thanks for your help.0
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