Banks not allowing new business accounts to be opened

susannekay99

Is anyone else having this problem?   During Covid-19?  We are not asking for a loan ... just a place to put new business funds!   We have contacted all the high street banks ... including the bank that held our previous business account.   Negative responses without a reason - although one bank said  "you don't reach our criteria" .... with no further explanation.  

susannekay99

PS - I have read numerous accounts of similar issue ... but still not found out the reason why ...... 

dunstonh

Is anyone else having this problem?

yes lots.

During Covid-19? 

That is the key reason.

 but still not found out the reason why

Banks are running at reduced capacity logistically and they are having to deal with all the BBL applications.   Most have taken the decision to stop opening new accounts to allow them to focus on existing customers.

Your existing personal banking account bankers would normally open a sole trader account (if you are setting up as a sole trader) as that is effectively a number 2 account.      Are you a sole trader, partnership or limited company?

HopeAndDriftWood

*including the bank that held our previous business account.*

Did you choose to close that, or did they? 

gt94sss2

There are a number of banks opening new accounts at the moment including HSBC, Barclays and Starling.

susannekay99

gt94sss2 said:

There are a number of banks opening new accounts at the moment including HSBC, Barclays and Starling.

Sadly Barclays (with whom we previously held a biz account for 48 years!) refused .... 

susannekay99

SaucySecrets said:

*including the bank that held our previous business account.*

Did you choose to close that, or did they? 

SaucySecrets said:

*including the bank that held our previous business account.*

Did you choose to close that, or did they? 

We did .... 

susannekay99

dunstonh said:

Is anyone else having this problem?

yes lots.

During Covid-19? 

That is the key reason.

 but still not found out the reason why

Banks are running at reduced capacity logistically and they are having to deal with all the BBL applications.   Most have taken the decision to stop opening new accounts to allow them to focus on existing customers.

Your existing personal banking account bankers would normally open a sole trader account (if you are setting up as a sole trader) as that is effectively a number 2 account.      Are you a sole trader, partnership or limited company?

Limited ....