Business account with Lloyd s?

pce967

Hi

I have recently opened a business account with Lloyds bank. Im starting a business which mainly will involve providing hosting, building and selling websites etc and sometimes payment received from clients (both national and international) may come via paypal, escrow etc.

I have been reading some accounts online that Lloyds bank have frozen the accounts of many business banking customers as a result of receiving large amounts via transactions from paypal/escrow into their Lloyds business accounts due to Lloyds being cautious (I completely understand this and the money laundering precautions etc) about the transactions and then asking for proof/evidence. This is fine but i've read that this has caused many problems for business customers at Lloyds who are then told to leave and are told that their accounts will be closed etc.

This is worrying me as I may receive payments in the sums of several thousand pounds to £20,000 to £30,000 in single transactions and I feel that it may cause me massive headaches if each time the bank decides to scrutinize each payment and then having the feeling that they could freeze my account and that this could then involve me spending a large amount of my time having to speak to them to assure them of the transactions etc.

My question is what can I do about this?

Should I open another business account elsewhere and move aware from Lloyds?

What sort of evidence would they ask for each time a large transaction is about to enter my account? screenshots of transactions etc. Should I just leave Lloyds and move elsewhere now?

agrinnall

The chances are the you'll have similar issues with any bank because the same ABL regulations apply to them all. The difference is in the way they apply them, anecdotally HSBC are now the worst because they have fallen foul of them so often and been hit with so many fines. I'm not sure that Lloyds are worse than anyone else but others may have direct experience that would help you come to a decision.

grumbler

pce967 wrote: »

I have been reading some accounts online that Lloyds bank have frozen the accounts of many business banking customers as a result of receiving large amounts via transactions from paypal/escrow into their Lloyds business accounts due to Lloyds being cautious (I completely understand this and the money laundering precautions etc)

I don't understand this, although the entire AML paranoia is beyond my understanding.
Are you sure it was about business accounts, not personal (suspected of being used for business)

KJSmith

I don't think I recall any posts here about Lloyds freezing business accounts. I know Barclays had popped up quite a few times though.

pce967 wrote: »

My question is what can I do about this?

During the account opening process you're asked for fairly detailed information about the suppliers you're working with and the expected activity through the account etc. Just be upfront and honest.

jonesMUFCforever

What estimate of turnover did you give Lloyds when opening the account?
Have you spoken to a business manager?