NatWest closes business bank account without warning

c0ver_p0int

@mulronie Overdraft was paid off every month. There is no difference to the way the account was run for the last 3 years and the business manager had no problem with extending the o/d and charging a fee. I he had he should have had a chat. That's what you expect from credit managers who do their job.

c0ver_p0int

@Thrugelmir the business manager only contacts me at the end of each year when he need to charge a fee. Other than that not a wimper. The issue for all borrowers are that if there is an issue about the account they should contact and discuss and feedback and guide. Not tell a business the account is closed after 7 days of receiving a letter.

olly300

Business banking is different from personal banking.

You are charged for everyday transactions that you aren't with a personal account. If you are overdrawn but keep paying it off the bank gets more money from you.

The reason Natwest may have decided to close the account is they probably don't like the sector you are in as it's now high risk.

Unfortunately banks do this regularly but tend to do this by refusing to open new accounts for particular business people in that sector, and then removing or decreasing overdrafts for existing business customers.

Thrugelmir

c0ver_p0int wrote: »

@Thrugelmir the business manager only contacts me at the end of each year when he need to charge a fee. Other than that not a wimper. The issue for all borrowers are that if there is an issue about the account they should contact and discuss and feedback and guide. Not tell a business the account is closed after 7 days of receiving a letter.

Old fashioned bank managers are coming back into vogue.

What the bank will want to see is financial information. Last set of Annual accounts along with monthly management accounts for the period since.

Banking is a relationship between 2 parties. The better the relationship the more flexible the bank will be.

Thrugelmir

olly300 wrote: »

Unfortunately banks do this regularly but tend to do this by refusing to open new accounts for particular business people in that sector, and then removing or decreasing overdrafts for existing business customers.

Overdrafts require banks to keep high levels of capital reserve whether the facilities are being used or not. Likewise a business requires a combination of facilities to provide the correct levels of funding.

DCFC79

There was a recent thread on here where the OP also had the account closed by Natwest.

grumbler

c0ver_p0int wrote: »

7 days from their letter, which arrived 7 days from the printed date. ...

Is it what your T&C say? IMO, 7 days is a ridiculously short notice.

olly300

DCFC79 wrote: »

There was a recent thread on here where the OP also had the account closed by Natwest.

Oh dodgy transactions?

gb12345

olly300 wrote: »

Oh dodgy transactions?

Account was first frozen and then closed shortly after.

It was a personal account and the OP on that thread was using it for receiving PayPal payments, so probably got caught for misuse (business on a personal acct)

olly300

gb12345 wrote: »

Account was first frozen and then closed shortly after.

It was a personal account and the OP on that thread was using it for receiving PayPal payments, so probably got caught for misuse (business on a personal acct)

No wonder they don't want the person's business.