How and When to Move from Business Banking to Corporate Banking

[AnnaF]

Hello All

Looking for a bit of advice on banking. Current bank is Lloyds. Company has had a business account for about 15 months. Limitations are online transfers restricted to £30k per day. Annual turnover is £1m+ now. Cashflow is not too bad. But for instance cash income on a month can be £150K and need £200k cash to pay out to salaries/contractors/PAYE/overheads etc. Other months have cash income of £300k with same outgoings. Have tried to talk to business manager about flexible overdraft of say £50k but he wants £150K in deposit account as security - doesn't make sense. At end of month need to make transfers online of up to £100k in one day.

I think if we moved to corporate account would have more flexibility. No problem with supplying accounts and other company information and have asked business manager to help. Feel like he is hindering the transfer because he wants to keep the business but is not interested in giving more flexibility on the account.

Do I just approach the bank in some other way to get a corporate account.

Any advice most welcome.
AnnaF

[Shauni]

It does not sound like you need to upgrade to a corporate account it sounds to me that you need to have a look around at different banks and see what they have to offer. Even by assessing what the banking market can offer it allows you to make a better judgement on whether you are getting a good deal or not with your current bank

[GRDCredit]

Anna

Is this your business as referenced in your profile? If it is then well done on reaching these turnover levels!

I would agree that it sounds more like a change of bank is required - get your accountant to help you shop around. Are you prepared to give security for the overdraft facility you are looking for?

With reference to your current bank it is probably not your manager's decision on the lending front - he is probably just the front man.


Geoff