Cheque in Sole Trading Company Name, not personal name and trouble paying in

gaz9448

I think i know the answer already but here goes.

My wife runs a small company buying and selling antiques. It's small enough that we just run it as a sole trader.  The bank account is an old personal account, since thats legal to do.  Couldn't be bothered opening a new account with charges etc... We recently had a parcel go missing, and Royal Mail actually gave us a refund.  But the cheque is in the company name, not the personal name, even though that was requested.  Been told by the bank we can't pay it in.  Just wondering what the options are?

We don't really take enough cheques, so not really setup a specific business account.  the fees don't really warrant it.  Thanks

Brie

Have you tried paying it in via a machine/ATM or by scanning the cheque?  Some times the automated methods will get around small differences in a name.   So while the teller at a bank might not allow you to deposit a cheque if the name is to "Ms Gaz trading" and going into "Ms Gaz" 's account it might work.  

ElefantEd

I set up a business account with the Co-op recently, because I was doing a project funded by my local council and they insisted, and it is free to use, with no fees. So it might be worth scouting around to get a bank account, though I agree it would be a bit of a nuisance just to put in one cheque.

RFW

There are plenty of simple ways to open a business bank account and transfer the funds.
Monzo and Starling have accounts that can be opened online. I think they both allow you to pay in a cheque just by taking a picture of it. They both have fee free accounts.

topcat105

This happened to me a while ago.
Royal Mail sent me a cheque made out to my eBay user name which is different to the name on my account. Bank would not accept it.
I sent it back to RM explaining the problem and received a replacement cheque with the correct name in less than a week.

DullGreyGuy

gaz9448 said:

I think i know the answer already but here goes.

My wife runs a small company buying and selling antiques. It's small enough that we just run it as a sole trader.  The bank account is an old personal account, since thats legal to do.  Couldn't be bothered opening a new account with charges etc... We recently had a parcel go missing, and Royal Mail actually gave us a refund.  But the cheque is in the company name, not the personal name, even though that was requested.  Been told by the bank we can't pay it in.  Just wondering what the options are?

We don't really take enough cheques, so not really setup a specific business account.  the fees don't really warrant it.  Thanks

It is not illegal to use a personal account but it is normally against the terms and condition of the account which can result in the bank taking action if they realise its being used for sole trader purposes (they rarely do). 

One of the few advantages of having a business bank account is the ability to have trading names and therefore accept cheques in those other names. There are some fee free business accounts, if they will always remain as such time will tell.

 The cheque cannot be in the company name because you say you are a sole trader and therefore there is no company. Presumably you mean its your business/trading name/style.

 If you want to keep running the risk on the personal account the easiest solution is to go back to RM and ask them to issue in your own name. 

steviebabes

In the days when you could accept payment by cheque on ebay I had one sent to me payable to Mr.E. Bay. I still have it along with one that bounced twice!

baser999

Brie said:

Have you tried paying it in via a machine/ATM or by scanning the cheque?  Some times the automated methods will get around small differences in a name.   So while the teller at a bank might not allow you to deposit a cheque if the name is to "Ms Gaz trading" and going into "Ms Gaz" 's account it might work.  

Last month I received a small cheque of £6 dated 6 January 2023, scanned it into my Santander account and it was accepted.

goodfella66

soolin said:

goodfella66 said:

Royal Mail do this on purpose knowing that very few people have a bank account in their Ebay name. Another underhand way to try and rip people off.

That's a bit of a leap isn't it! I have made a few claims over the years, the last one being last Autumn. I have always got my cheque in my name, regardless of my ebay account name  or business name - I claim under my own name and fill in all the paperwork in my name- and RM have never sorted through the scanned documents to issue a cheque in any other name. I'm unfortunately needing to make another claim shortly , there's no confusion on the form at all - it asks for my name and there is also a box to add a company name if you want, but as I trade as a sole trader as well as other made up business names  I just leave that blank. 

I fill it in the form in exactly the same way as you and I always get a cheque in my Ebay name. I don't put my Ebay name anywhere on the form. Luckily if I do get a cheque (instead of a book of stamps), my bank always seems to allow it through.