Business bank acc and right to offset

[Ted2012]

Hello,
This is my first post. My position is as follows:
I am in the process of applying for and IVA with my husband. He is self employed and has a business acc with santander. He also has a loan with them and credit card with on of their linked creditors. We are worried they will offset from his business acc. He needs that money to pay his business rent, bills, suppliers etc....
We tried to get a coop business acc but have been refused.

I have a few questions:
1. When the IVA is set up will he be able to keep his santander bus acc?
2. How quickly will the bank offset? Do u think we can move money out say everyday while the IVA is getting processed?
3. Where else can we gat an acc?

Im getting quite in a bit of a panic as he needs a business acc to accept card payments.

Thanks for any advice
TD x

[Niobe]

Hello,

Obviously Santander will be going into the IVA so they possibly could offset from his business account but not overly sure on that one.

Have you tried Barclays? You might be able to get one with them, there's always Yorkshire Bank.

I would certainly move the money out of the account just in case.

[Ted2012]

Thanks for he quick reply harpic , unfortunately we have a few creditors and they are linked to barclays. Will look at yorkshire bank again, i think the problem s being a sole trader means they do a credit check. I wonder if it might be easier to get his mum or dad to open a bus acc and use that as they are kind of involved (they gave him money to get started).
So many what ifs!!
Hanks again
TD

[Niobe]

That might be a good idea - at least then he won't have a problem with the business.

[sjbyron]

Hi Cashplus do a prepaid business account it allows standing orders, direct debits and online banking, it provides a mastercard prepaid with the companies name on it.
Its fee free except an annual service charge oof £30 no transaction or bounced payment charges

Google cashplus and good luck

[Niobe]

Does it accept card payments? This is what the OP wants.

[sjbyron]

Not sure but cant you get merchant accounts from paypal, npchex orsomething like that?

Another idea is unity trust bank which may accept you

Stu

[sjbyron]

BTW i dont see any mention of accepting card payments

[Niobe]

The last line of the post:

Im getting quite in a bit of a panic as he needs a business acc to accept card payments.

[sjbyron]

ok then paypal have different business tools available

[Niobe]

I think the OP needs to look around - maybe that the IP can help with advice on a bank account.

[Hyperdrive]

I`m in a Partnership IVA and run a retail business that uses Evalon for card payments.
As far as I`m aware the merchant service acts as a third party in that they electronically collect the funds from chip and pin, then deposit them in our account a few days later, for a fee. The merchant service you use does not have to be affiliated to your business bank.
In fact it makes sense to shop around towards the end of your contract (typically 12-24 months) and change the merchant to the one who currently charge less service charges (terminal rental) or commission. Coincidentally I had a rep in the other day from another provider offering a better deal when my contract expires.

[Ted2012]

Thanks hyperdrive. We use streamline as our merchant and cardsave rent us the chip and pin machine. They said when we set this up that we need a business account for the chip and pin. If we cant get another business account i cant see how we can take card payments. Thought about calling cardsave/streamline and trying to change the bank acc details to a current account we hav but i feel like its dodgy not having a bisiness account.
TD

[UpToMyNeckInIt]

Thought I would resurrect this thread, as it is a topic very applicable to me, and wonder if anyone has an update / alternative opinion?

I too run my own Ltd. Co. but have an IVA in my own name (literally only agreed at end of July).

As I understand it, I as an individual am a separate legal entity to my Ltd. Co.

Coincidentally, I also had an overdrawn personal current account, and unsecured loan with Santander, with whom I also still have my Ltd. Co. Business account (which is not, nor ever has been, overdrawn).

Therefore, I don't think Santander have the right to set-off my personal debt against any funds in my business account.

However, as a precaution, with all accounts being registered to my home address, I set up another bus. bank acc, but have kept the Santander one open, albeit with minimal funds (1p) as they are about the only business account that are genuinely fee-free.

Would be interested to hear of other experiences of the self-employed in an IVA, and I stand to be corrected on any of the my points/opinions by a forum expert, but I think the best advice is:

If you are self-employed and prior to entering into an personal (as opposed to a corporate / business / commercial etc.) IVA:

1). Most importantly, get yourself set up as a Ltd. Co (to legally and from a creditor's viewpoint 'separate' your business from you as an individual; and

2). Seriously consider opening an alternative bus. bank acc. if you have your account at the same (or linked) institution as a personal creditor, just in case.