Switching a business bank account with bounce bank loan

Jonkendall

I currently have a bounce back loan with HSBC, but am looking to change my business account provider. Is this possible?

MattMattMattUK

Yes, it is possible, but it may not be advisable, especially if you plan to top up.

Jonkendall

MattMattMattUK said:

Yes, it is possible, but it may not be advisable, especially if you plan to top up.

Thank you Matt. I wasn't planning on topping up, but for what other reasons would it not be advised? 

MattMattMattUK

The other reasons might be the actual hassle. I did so about three years ago, it took nearly a year to get all customers paying into the new account. A year's free banking on switching might sound nice, but I am not sure it is worth the time involved, our business banking fees only add up to around £200 pa and that includes GBP and Euro accounts. You may actually find it better to speak to your relationship manager if you have a cost issue.

Grumpy_chap

Banks are tightening access to many products currently, and an application will likely leave a mark on your personal credit file, but the account is not guaranteed.
Unless there is a compelling reason to change, it is probably simpler overall to stay put.

Grumpy_chap

This thread gives an example of why changing business banks is not helpful:
https://forums.moneysavingexpert.com/discussion/6214073/bounce-back-loan-top-up-declined#latest
In times of turbulence, the more stability you can retain the better.