Have you had notification about your Business Bank Account being Forcibly closed?
Here is a message we recently received from an individual who had a business bank account but had been informed it was about to be closed:
“I have just received a letter from Barclays Bank informing me that they are going to close my business account but have given me no reason and having contacted them to ask why, they have said the decision is final so I must find an alternative for my business. Do you know why they would have done this and is there anything you can do to help?”
In truth there could be many reasons why any bank will have decided to close your account and they have no obligation to tell you why however it could be for a multitude of reasons so we will list some possibilities to see if you recognise any that might relate to your situation.
Adverse Credit – Have you or any of the other main principles of the business suffered form any past or recent adverse credit? Even if you have had your business account opened for a while they may still decide to close it if any of your personal circumstances have changed. As an example, if you recently defaulted on a loan payment or had a CCJ against you could prompt them into taking this action. It could also be said that this could also happen if it were one any other Directors or main shareholders of the business.
Business Activity – Is your business involved in an industry which they wish to avoid? If your business is involved in some types of financial activity whereby you handle or hold other people’s money then that could be a reason why your account is being close. Typically money transfer businesses, short term or PayDay loan companies or any other financial activity which could ‘hold’ or manage a clients money. We are not sure why these businesses are being targeted and excluded however there is a constant flow of businesses like this which are being advised their accounts are to be closed.
With your Business Account being Forcibly Closed do you Need more Information or Advice?
Call 0800 773 4316 or 020 3286 3929
Inactivity – Some business bank accounts are targeted because they simply do not make any transactions which demonstrates inactivity within a business. This would typically be an account which has been opened well in advance of getting the business started but then foreclosed due to lack of activity.
Non UK Residents – All business bank accounts can only be opened by UK residents, something which by law could not be changed, however there are some instances when this is being
So in truth we may never know the real reasons why your Business Account being Forcibly Closed but it is often something which has happened in one of the main principles credit file so we would suggest you start looking from there.
Business Account being Forcibly closed
It is not too unusual to have your account being closed but if you need some help and advice, then contact one of our specialists who will be able to advise on what options will be available and what accounts will be available – Call 020 3286 3929 and ask to speak to a business account adviser.