Keeping my personal account safe

potentialhousebuyer

I was hoping someone could offer me some advice.

i have just been approved for a government backed start up loan through the British business bank. 

https://www.startuploans.co.uk/

It’s a personal loan for business purposes and is therefore paid into my personal bank account.

i have a business bank account with another bank so will want to keep it all separate as I also know terms and conditions of personal bank accounts don’t like you using them for business activities.

So how do I ensure this does not look suspicious and get my personal account closed if i have a loan amount go into my personal account and I send it straight to my business account? 

Thanks. 

MyRealNameToo

potentialhousebuyer said:

It’s a personal loan for business purposes and is therefore paid into my personal bank account.

Are you sure this last bit is correct? 

They will want it paid into an account that is in your personal name, but then a sole traders business account is in their personal name. I doubt they care or even would be able to tell if its a personal lines or a business account

Eyeful

Would not the safest way be to contact your banks and ask them directly. They must have come across this problem before and found a way around it. Each bank may look at it differently.

potentialhousebuyer

MyRealNameToo said:

potentialhousebuyer said:

It’s a personal loan for business purposes and is therefore paid into my personal bank account.

Are you sure this last bit is correct? 

They will want it paid into an account that is in your personal name, but then a sole traders business account is in their personal name. I doubt they care or even would be able to tell if its a personal lines or a business account

Yeah - https://www.startuploans.co.uk/about-the-loan

I had to provide bank statements for affordability, so they know what bank it will be going into and that it’s a personal account. 

potentialhousebuyer

Eyeful said:

Would not the safest way be to contact your banks and ask them directly. They must have come across this problem before and found a way around it. Each bank may look at it differently.

That’s a good point, I will speak with them too. 

Ergates

MyRealNameToo said:

potentialhousebuyer said:

It’s a personal loan for business purposes and is therefore paid into my personal bank account.

Are you sure this last bit is correct? 

They will want it paid into an account that is in your personal name, but then a sole traders business account is in their personal name. I doubt they care or even would be able to tell if its a personal lines or a business account

Part of the CoP check is if it's a personal or business account - so if they're using a standard bank transfer for the funds, they'd need to know.  If they're doing a BACs transfer they I don't think they would.

potentialhousebuyer

They have done the BACS transfer today.

I have all the paperwork, loan agreement, etc, so I’m going to pop into my branch once it hits the account.

I run a community interest company so I have a charity/community business account with the Co-op where it will be transferred to. 

Eco_Miser

Business owners/sole traders will from time to time add new funds to their business account by a transfer from their personal account, and possibly withdraw funds by a transfer in the other direction. This is not using their personal account for business purposes, anymore than buying shares in a publicly listed company using their personal account is.

Theleak250

If I was a bank I’d close down your personal account….. this doesn’t add up.

potentialhousebuyer

Theleak250 said:

If I was a bank I’d close down your personal account….. this doesn’t add up.

Great way to make someone worry! 

potentialhousebuyer

Eco_Miser said:

Business owners/sole traders will from time to time add new funds to their business account by a transfer from their personal account, and possibly withdraw funds by a transfer in the other direction. This is not using their personal account for business purposes, anymore than buying shares in a publicly listed company using their personal account is.

Thanks. I just like to ensure proper record keeping.