Business bank account - credit 'protection'

James_Green_1982

I was recently speaking to someone regarding business bank accounts.
They told me that with a business bank account, you can make a bank transfer payment and gt the same credit protection terms as with a credit card.

ie If you paid a company direct for some goods (or services?) and that other company went into liquidation (or perhaps failed to deliver for some other reason, eg faulty goods etc), then you could claim back the 'lost' money from your bank.

Is this correct?
It seems like a good option to pay for services or goods from companies (or individuals?) who cannot accept credit cards.

The guy I was speaking to said his information may be out of date.
I am planning to speak to a few banks about this - but I would be interested to hear from ohers who have used such a facility.

Thanks.

BrownTrout

No that is utter rubbish.

Zanderman

James_Green_1982 wrote: »

The guy I was speaking to said his information may be out of date.

His information is more than out of date, it's delusional.

jonesMUFCforever

Hang on a mo - the OP could be right but not in the way that you think.

Credit finance - bills of exchange - bills of lading etc etc - its a technical area but cab be pursued through your business banking manager - if you think its worth it and of course both sides agree to the deal.

agrinnall

Escrow could be another option to consider.

Uxb1

@JonesMUFC...as ever is correct.
I used to know a small bit about this in engineering but this was for seriously mega international payments where there were various intermediaries banks involved.
As ever of course you will be paying for this guarantee - just like with credit cards someone has to pay for the section 75 protections - and that will be those paying sky interest rates that are doing the paying.