Public sector client wrote a cheque to us in our trading name that the bank is unaware of

[Karimbo]

We have 1 limited company with a business bank account. We use 2 trading brand names. Bank is not aware of our trading names.

We normally ask our clients to use our ltd name to do BACS transfers. We've never been paid by cheque - this is the first time, so we did not send client any cheque instructions (we have BACS instructions on the invoice).

Long story short - bank will probably reject this. But public sector will probably take 6 weeks+ to rewrite us a new cheque.

What would be the best course of action? Get bank to register the trading names or ask for the cheque to be rewritten?

We bank with Barclays

Thanks

 

[Deleted member 59730]

If its a cheque for £1 million or more from Columbia the bank will probably accept it. If its for £10 from the Bank of England they will likely reject it.

Joking apart just write 'Trading as ' on the paying in slip and sign it and it will prob be OK.

 

[StevensOnln1]

It would probably be a good idea to change the instructions on future invoices as only the sort code and account number are needed for BACS anyway - you can put anything you like for the payee name as it isn't to send the payment. I don't know how easy it is to do with Barclays but I had no problem getting HSBC to add a trading name to my company account a few years ago.

 

[FirstClassVirtualOffice]

As above, usually does not matter what payee name you use, as long as sort code and account number are correct.Ideally though, to make things easier, just add the trading name to the account.

 

[David Griffiths]

It does matter what payee name is used, as banks are tuned in to cheques being paid into the wrong account. Unless the trading name is very similar to the company name, it will be rejected. Even if it's almost identical, it might still be rejected. The only difference betweem my company name and the trading name was the inclusion of the word "limited" and the bank insisted on having the cheque books and paying in books with the title "G&J Limited T/a G&J

You need to make the bank aware of the trading name(s) that you use. This is normally in the form of a board resolution confirming the trading names and requesting the bank to process cheques banked bearing that name.

[PS - if it's a case of the name being similar, I find that it's best not to pay the cheques in over the counter. Most banks have a quick paying in service where you drop the banking into a slot using a special envelope. By the time that they open it you will have legged it and it's much less likely to be challenged! ]

 

[FirstClassVirtualOffice]

I was referring to bacs payments not cheques. You're right about cheques though, has to be correct. I always write our account number on the bank just to be certain of the account it should be paid into. Nat West have a form they ask you till in but we have also just written a plain bog standard letter informing them of a trading name and that was fine.

 

[David Griffiths]

I was referring to bacs payments not cheques.

Which misses the point that the OP's query is about a cheque payment

 

[FirstClassVirtualOffice]

My post opened "as above"...I was making reference to the post above mine re the bacs and payee name with regards future payments.

 

[David Griffiths]

So two irrelevant posts then