Starling Business bank Cash limit

hamishandarchie

My daughter is running a cash based business as a Sole trader. She is using A Starling business account.
She has been informed that she is exceeding the "Cash Deposit Limit" for her account. 
After talking to them they informed he that the limit cannot be raised.

Has anyone else been affected by this?

sarah1972

I have a personal Starling account and I get charged for anything over £1000 a year for each deposit. So I presume she can still pay in but just pay a transaction fee each time which is what I have to do, could be different for a business account though. X

hamishandarchie

The business account has a fee for paying in cash, this is done at the post office. BUT there is a cash deposit limit of £20k per year, this cannot be changed. 
The value of the cash limit can vary but we cannot find an explanation  for why it is there.
I have a personal Starling account and I phone them and my limit is £5k, the phone person could not explain why it is there.

Savvy_Sue

Handling cash costs money. It takes up space, it has to be counted, it has to be physically moved around. Clearly Starling don't want the bother. Especially as they don't have any branches?

Has she got to be cash based? I'm always taken aback when faced with a need to pay cash, I carry very little these days.

If she does, she needs a second account with a bank which will let her deposit cash. Tgen she can move it to Starling if needed.

Sandtree

hamishandarchie said:

I have a personal Starling account and I phone them and my limit is £5k, the phone person could not explain why it is there.

You wouldn't really expect a call centre agent to be informed of the strategic rational for decisions... unfortunately some agents try and guess at the reason and present it as fact so it sounds like you got one of the better ones.

Given Starling is a digital online only bank it doesn't really feel too surprising that they aren't that interested in supporting physical monies. Whilst its free for you to deposit to the post office its not free for Stirling and so they are losing 0.1% or whatever the handling fee is each time you pay in. 

To the OP - if you are a cash based business then a digital only bank is probably not the best choice... either look at a more traditional bank with branches who wont have cash limits or look to drive more payments by card to reduce the need for cash handling... around our way even most market stalls are no-cash now.

hamishandarchie

My daughters customers want to pay with cash, some will do bank transfers.
She is a mobile dog groomer and a lot of her customers are elderly and want to pay in cash.
Starling bank is digital but they allow you to deposit money into the Post Office for a fee, think it is 0.7%. We cannot find any reference to a "Cash deposit Limit" on their site, so we were wondering if all banks have a limit.

400ixl

You will be surprised how many are able to and willing to use debit / credit cards rather than cash or bank transfer.

Has she looked at something like Sum Up or Square to be able to card card payments in person?

J_B

Some friends of ours own a hotel.

Lloyds business bank were charging for cash deposits so she used to pay all the cash into her personal account and then write a cheque to the hotel instead - she soon persuaded Lloyds to change their charging structure!!!

Sandtree

J_B said:

Some friends of ours own a hotel.

Lloyds business bank were charging for cash deposits so she used to pay all the cash into her personal account and then write a cheque to the hotel instead - she soon persuaded Lloyds to change their charging structure!!!

She's lucky it didn't go the other way of them closing per personal account for breach of the T&Cs of using it for business plus the likely issue that she is pocketing company money even if she is then repaying it. Why write a cheque rather than just BACS/Faster Pay the monies?

J_B

Sandtree said:

 Why write a cheque rather than just BACS/Faster Pay the monies?

It was a while ago .....

Sandtree

J_B said:

Sandtree said:

 Why write a cheque rather than just BACS/Faster Pay the monies?

It was a while ago .....

Hence I included BACS but then the idea the local branch was empowered to negotiate also shows it was a LONG time ago