HSBC BBLS personal account to feeder

Danrover82

Hi all 
So aftrr 10 days it seems that HSBC have sent a letter out stating there is a problem with the loan as its a personal account, all be it used solely for business.

I've just been advised over the phone to apply for a temp feeder account and RE APPLY for the BBL. 

Has anyone had this issue and does it have a promising end? 

dunstonh

Most people run a business bank account and don't breach the bank's T&C.    However, from posts on this site, it is clear that a good number are using personal bank accounts and it appears that many are having delays or problems because of that.     I suspect many of those in your situation are still waiting as there are more hoops to jump through and processes to complete.   In theory, it should be ok in the end.  Just a lot longer getting there.

Danrover82

I only opened and used was was suggested to me as a sole trader for my account. 

dunstonh

banks have historically turned a blind eye to it unless you deal in cash or have lots of transactions.  However, what you save in charges could be costing you more with your accountant as they have to sort through the mess of personal and business transactions.      Nowadays, with business banking dirt cheap (unless you deal in cash), its better to have a separate business account for your business.  It has also helped those that already had one and applying for a BBL.

Danrover82

It's only business transactions that go through that account. 

dunstonh

Are you  a sole trader/partnership or a limited company?

If sole trader/partnership, is the account set up   your Name t/a trading name or is it just your name?  If trading name is on there, then you shouldnt have any extra hoops to go through.  If it is just your name then expect delays but you should still be ok.

if limited company, then you are looking at wider issues potentially.

Danrover82

Just my name  as a sole trader. 

davetheraver

I always had issues when trying to skimp on paying the business fees when using personal accounts for business purposes, which forced to years ago to register as a LTD company and do everything properly.

I also found my business excelled as people generally take you more serious, skimping on business account fees does not make you look like a reputable business from my experience.

I was surprised to see banks even entertain customer who are going against their T&C's, seems like they are now putting a stop to it.

Danrover82

Not everyone needs to be a Ltd company Dave. 

Plus I only followed what I was told by the bank many months ago long before anyone ever heard of covid 19!!!

davetheraver

Danrover82 said:

Not everyone needs to be a Ltd company Dave. 

Plus I only followed what I was told by the bank many months ago long before anyone ever heard of covid 19!!!

No they dont, and I never claimed or said they did, did I?
But when your running a business, regardless of what type you are, the correct bank accounts should be used as set out in the Banks T&C's, personal is for what it says, and business is for what is says. If people want to avoid using business accounts to avoid fees, or run a business in that grey area of self employed/sole trade loop holing a personal account then that's their choice.

But that grey area can work both ways as we are seeing, banks refusing applications from personal accounts, I am not saying I agree with it, but if customers can bend the rules in their favor using personal accounts for business, then banks can do the reverse unfortunately.

They also shouldn't be advising business customers to use personal accounts, if they did advise you that, then I would be calling the complaints department and making a complaint.

twister24

Danrover82 said:

Hi all 
So aftrr 10 days it seems that HSBC have sent a letter out stating there is a problem with the loan as its a personal account, all be it used solely for business.

I've just been advised over the phone to apply for a temp feeder account and RE APPLY for the BBL. 

Has anyone had this issue and does it have a promising end? 

Hello Danrover82 I remembered you was on the same boat as me just an update I did applied for the business account is open now and I’ve applied from there so I am on the waiting mode just a heads up when I’ve talked with business dep they advised me that it will takemore time to open feeder account vs business if you already a personal account holder! Good luck