Cost Effective Banking Solution for a Limited Partnership (1890ACT) Not an Ltd Liability Partnership

rolafson

I am looking for a low cost banking solution for a 'Limited Partnership' that falls under the Limited Partnership Act of 1890. It IS NOT a Limited Liability Partnership and therefore does not require registration at companies house like an LLP would. The partnership does however have general and limited partners. It is not a common partnership and therefore does not seem to be widely understood.

The business activity is commercial lending and therefore can, from time to time, experience high volumes of transactions - both electronic and cheques. Fees associated with many accounts that I have seen are not appealing. Volume is high and turnover is well in excess of 6.5m which seems to typically be the suggested upper limited.

So my question us, does anyone know of a bank/building society that:

• caters for my legal entity - whilst a partnership we can't satisfy some elements of the account opening requirement for an LLP?
• will handle varying volume with excessive charging?

Any help appreciated.

PaulW922

Most banks that offer ordinary partnership accounts will service your LP. It is though, a you point out, quite unusual these days as most people will have moved to LLPs. For that reason I wonder if some of the newer 'app based' banks might have an issue if they do not have the partnership type listed? TBH, I think I would just apply as a general partnership (not an LLP) because ultimately, that is what an LP is - it is just that the 'sleeping partners' have limited liability. With business accounts, including those for limited companies, there is usually a clause about account signatories being personally liable for debts anyway. 

You should also bear in mind that there is concern about LPs being used fraudulently and as such, banks are likely to want to make more in depth checks as part of their anti money laundering processes.