Bounce Back Loan - Changing Banks After Loan Granted

Wilko58

Hi, I received a BBL from Yorkshire Bank but want to close my account as I've just started paying monthly bank charges and as my transactions are few and far between (partly because my work is seasonal and partly due to lockdown) I want to move my business to a personal account. Yorkshire Bank said no but I'm sure I read somewhere that as long as I set up a DD to pay the loan it doesn't matter where or who the loan is with. Can anyone confirm or otherwise that I can close my business account that is linked to my BBL?
Thanks

[Deleted User]

Most banks terms and conditions expressly forbid the use of a personal account for business purposes, it is one of the reason so many people have had issues when it comes to applying for a Bounce Back Loan.

There is no specific link between the Bounce Back Loan and having a business account with the bank which issued it, you are within your rights to change bank and set up a new direct debit. So yes you could close the account, but you might find your bank closes your personal account or charges you fees if you try and use it for business purposes, something that it seems the banks will be pursuing and potentially somewhat aggressively going forward. 

Wilko58

Thanks for your message MadMattUK . I'm a sole trader so can use a personal account - I asked at the Halifax before I opened it. The only reason I used YB for the BBL was because it was far easier (well it was supposed to be but that's another story!) than the other options.

Grumpy_chap

It's best practice to keep your personal and business accounts separate.

jfinnie

Business banking at Starling is basically free if you don't use cash.  Application was easy for me (though I'm limited, not sole)

dunstonh

 I want to move my business to a personal account. 

That would breach the T&C of most banks (but not all).

I'm a sole trader so can use a personal account - I asked at the Halifax before I opened it. 

The Halifax terms and conditions states (copy and paste):

Without our consent, you must not open or use a personal

account to hold money for someone else (including as a

trustee or personal representative) or for the purpose of a

business, club, charity or other organisation. We have different

agreements for customers who are not personal customers. 

Are you sure you have proper consent?  If you are not using counter services (i.e. cash) and no business banking services, you may get away with it. Unless there is a future issue similar to now (where many people using personal accounts have had problems getting a BBL).

Grumpy_chap

Halifax might realise very quickly if you use a personal account for business, especially if the direct debit to pay the BBL is somehow identified as being BBLS through the system.  BBLS is only available for business customers.

Wilko58

Thanks all, I asked a customer service rep at the bank and they said it was okay. I basically have about 30 payments a year going in and other than transfers to my personal account (they are separate accounts and I've also got one for a rental property I have) and my tax bill that is all I use it for (which is why I don't want to pay a business account fee). I will check with Halifax again or look for a business account with free banking.