Business Loan at Lloyds TSB

[Viki.W]

Hey all,

Had meeting with TSB business banking manager on Tuesday to tell her I was insolvent and she acted just like the personal banking manager. Was very helpful but didn't know if I could keep my account. This is very important as I accept credit/debit cards at the restaurant and then they are automatically credited to account so I had visions of all of last weeks being taken from me.

She's just called and said she spoke to her boss and they would let the account operate as normal and stop the loan for three months, after this they will pursue the debt. This makes sense doesn't it? I am hoping I will have a buyer for the restaurant by then. After the three months I suppose they will maybe give it to a debt collection agent, any one any experience with this. I guess I shouldn't start worrying yet and just be happy I can operate my account.

Kind regards, v.w X

[littleted]

Hello VW
Are you going to be proposing an IVA? If so then you should maybe look at opening a business account elsewhere. Are you selling because of debts or is your business not viable?

[MelanieGiles]

You will need to try and obtain alternative business banking, as Lloyds will most likely close this account if you enter into an IVA.

[Viki.W]

Fortunately, I'm one step ahead and have actually already opened a business bank account with HSBC. I did it last week just in case. I have been accepted for a chip and pin machine with them which will take 3 days to set up after I've formally asked for it to be sent, they have already done credit check so as soon as I have to, I'll transfer everything over to them. The chip and pin facility only requires 1 months notice of cancellation too so everything should run smoothly....I hope.

Melanie, do you recommend that I transfer over to this account now?

v.w

[Soulgrowth]

I would [:)]

Good foreward thinking, and pre-planning

Good luck

Debbie

[luluj]

Sorry HSBC close accounts of all people entering IVA's or Bankruptcy - they tend to give 28 days notice of doing so - please look again for alternative banking arrangements before it is too late.

[littleted]

Am I being wrong for suggesting that HSBC would be non the wiser unless you tell them, as there should be no applications for credit under the IVA, so no real reason to do any credit searches?

[luluj]

HSBC / First Direct go through the insolvency list and gain the information from there - we opened a FD account with them in Julylast year, our IVA was approved in September and they closed our account in January as we had entered an IVA.

Not worth risking it!

[Viki.W]

Ok, you're all worrying me now. I will hopefully be offering a lump sum iva from sale of business, this prob won't be for a few months yet. HSBC aren't a creditor or associated with any creditor and by the time I offer IVA I will have sold my business anyway and won't need the business account. The account is already open now so HSBC wouldn't know what I am planning and credit search already done. I have no lending facility with them so it won't affect them... or so I'm thinking. Maybe an expert could clarify this for me to stop me worrying all night. Thanks, v.w

[luluj]

Your IVA will remain on your credit file for 6 years from date of approval - therefore even thought HSBC are not a creditor they will still close your account irrelevant as to how you operate your account between now and thej - we always had a minimum of £300 in the account at the end of the month, had over £3000 paid in each month but still they closed our account.
Not worth risking it in my opinion - there is enough pressure on you while arranging an IVA and in an IVA and even though F&F hopefully they will still read the register as you are in an IVA.

[Viki.W]

luluj, sorry I must have been typing when you posted, do they check the register at random throughout the year or just on opening or when they are a creditor? v.w

[luluj]

I understand that they actually employ people to trawl the register and court hearings listings to gain this information.

[Viki.W]

Oh dear, but the account will hopefully be closed before any mention of the iva...mmm, these things are sent to try us eh? I just want to keep business going so it's worth more. v.w

[dcl]

Just wanted to say I've been in an IVA for 4 years now and I've banked with HSBC the whole time and they haven't closed my account.

[Viki.W]

A bit of good news....hooray, there's still hope yet eh dcl? [:)]