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Opening business bank account problems
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abbas5001
Posts: 351 Forumite


Hi all
I am selling my business, it's a convenience store. I have a buyer, he has never run a business before and is a sole trader. He needs a bank account to run the business of course and also take over the services such as the lottery and needs to provide Camelot with a bank account and sort code.
He has tried a few banks but they insist they need proof of address from the store address for him, they won't accept his proof of ID and residency from his personal address. I can see their point, but how is he supposed to get the documents showing proof of address such as a gas bill until he has taken over and to take over he needs a bank account?!
This is all holding me up!
I am selling my business, it's a convenience store. I have a buyer, he has never run a business before and is a sole trader. He needs a bank account to run the business of course and also take over the services such as the lottery and needs to provide Camelot with a bank account and sort code.
He has tried a few banks but they insist they need proof of address from the store address for him, they won't accept his proof of ID and residency from his personal address. I can see their point, but how is he supposed to get the documents showing proof of address such as a gas bill until he has taken over and to take over he needs a bank account?!
This is all holding me up!
0
Comments
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He can simply set up another personal bank account and use it as business one. There's no legal requirement to have business bank account to run business. Then , once he takes over, can change it on business bank account, if he wants to.0
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He can simply set up another personal bank account and use it as business one. There's no legal requirement to have business bank account to run business. Then , once he takes over, can change it on business bank account, if he wants to.
1. Which bank do you know of that allows within their agreed terms to allow you to their personal account for business purposes?
2. How does you answer address the concern of the OP about their client requiring proof of address of the store
OP - I would suggest your customer asks his solicitor who I hope he is using to purchase this business to assist in the matters he appears to be raising with you.0 -
There's no legal requirement to inform bank about using personal account for business purposes. Otherwise thousands of ebay sellers would had to open business accounts first. Banks will insist on business accounts, because they charge more for them, but, from legal point of view, it's unnecessary. Once he'll have bank account, he can transfer bills on this and he'll have proof of address.
Utility suppliers are less concern, where customer is based, more about getting paid on time.0 -
There's no legal requirement to inform bank about using personal account for business purposes. Otherwise thousands of ebay sellers would had to open business accounts first. Banks will insist on business accounts, because they charge more for them, but, from legal point of view, it's unnecessary. Once he'll have bank account, he can transfer bills on this and he'll have proof of address.
Utility suppliers are less concern, where customer is based, more about getting paid on time.
So just so I understand you correctly:
1. Contracts do no create any legal obligations/requirements
2. There is no difference to someone selling a few things on ebay, presumably using paypal for most payment transactions anyway, and someone running a local convenience store where they will no doubt be wishing to deposit cash (notes & coinage) and/or request coinage for their floats, not to mention wishing to buy stock from various suppliers/wholesalers, paying all the other various bills associated with the shop, possibly looking to accept alternative payment types (but probably NOT paypal) and have a contract with Camelot about the lottery terminal.
Silly me. You can learn something new everyday here.0 -
No, there's no legal requirement to have business bank account. And we're not talking about using personal bank account to run convenience store permanently, just on beginning. Once new owner has utility bill on business name, can open business bank account.0
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