Business Bank Switching

fcpanda

Hi,

Just wondering if any of you have had any experience of Business Bank Account Switching?

I set up as a sole trader last year as a side job and in applying for a business account with many banks (incl Natwest) I faced a lot of rejections as my business primarily comes from abroad and is of higher value therefore high turnover.

I know I didn't technically need a separate account as a sole trader but my personal accounts didn't suit/ stated not to be for business use.

Lloyds were kind enough to offer me an account and this has worked very well- however it is now coming to the time where bank charges become applicable.

I was thinking of applying to do a switch to Natwest despite previous rejection, now I have a years trading and figures etc under my belt as they offer 2 yrs free banking and accounting software that I currently pay for saving me circa £300 a year.

My question is: if during the switch Natwest reject the application for whatever reason, can this harm my Lloyds account?

PRAISETHESUN

Account opening and account switching are two separate processes, even though you might choose to nominate an account to switch during the application process. Personally I'd apply for the NatWest account and wait and see what happens. If you get rejected then obviously you can't switch. If accepted, once the account is up and running and you have full access to it (eg. online banking, ability to make/receive payments, etc), then you contact NatWest to start the switch process.

lr1277

I don't run a business so don't have a business account. But I would not have my business account with the same bank as my personal account. If there is fraud on one account (or an accusation of fraud), then both accounts are shut down, or at least suspended until investigations are finished. That could leave you in a sticky situation.

I think I have seen posts to that effect on these boards.

So if you want to switch away from Lloyds, go ahead, but I would think very carefully about switching to the bank where I had my personal account.

And I know this is MSE so the following might be frowned upon, but if an organisation has treated me well (especially when another organisation has not), I would continue to keep my business with the organisation that treated me well. I value customer service over costs and/or rewards.

born_again

lr1277 said:

I don't run a business so don't have a business account. But I would not have my business account with the same bank as my personal account. If there is fraud on one account (or an accusation of fraud), then both accounts are shut down, or at least suspended until investigations are finished. That could leave you in a sticky situation.

I think I have seen posts to that effect on these boards.

So if you want to switch away from Lloyds, go ahead, but I would think very carefully about switching to the bank where I had my personal account.

And I know this is MSE so the following might be frowned upon, but if an organisation has treated me well (especially when another organisation has not), I would continue to keep my business with the organisation that treated me well. I value customer service over costs and/or rewards.

Perfect way to get a double bribe.
Switch personal & then business 😜

NorwichMan

Just to say I started a sole trader business in 2021 and opened a business account with Starling. There are zero charges for maintaining the account (although also zero interest) and it has worked well, not had any issues whatsoever. Maybe worth considering.