Can I use First Direct Sole Account as my business account?

shapala

Hi all

I have an eBay business selling computers and looking to move form HSBC to First Direct since I find the £12.95 monthly fee worthless now.

So, is it ok to open a First Direct sole account for this reason? It would only be setup for my eBay business. All other income goes through another bank account. Never had any problems with HSBC but hoping it'll be ok with FD.

thanks in advance

dr_adidas01

shapala wrote: »

Hi all

I have an eBay business selling computers and looking to move form HSBC to First Direct since I find the £12.95 monthly fee worthless now.

So, is it ok to open a First Direct sole account for this reason? It would only be setup for my eBay business. All other income goes through another bank account. Never had any problems with HSBC but hoping it'll be ok with FD.

thanks in advance

Most banks don't like you using your personal account as a business account its in the T&C's that if you do use your personal account for business then they will close the account.

HSBC are no different as FD are part of the HSBC group I should imagine they have the same T&C in there conditions of account use.

There are plenty of business accounts that offer free banking for upto 18 months. It might be wise to look at these.

There have been many recent threads on here about banks closing personal accounts that people have been using as business accounts.

lovinituk

Its not illegal but as above its against the T&Cs of a personal account. I actually used a personal account (not FD) for nearly 3 years as a sole trader business account without any problems. I only switched to a business account when the business became a Ltd company and therefore a separate legal entity.

Its your choice whether you want to take the risk at the end of the day.

shapala

Cheers for the replies.

Hmm, I think it'd be wise I have a look at a business bank account. I've been using my HSBC sole personal account for 7 years now, and due to the nature of the business, it's large amounts going in and out on a regular basis so I'll definitely have to look into a business account. Lloyds look good as they're free (not interested in any kind of benefit other than it being online accessible).

Thanks again.