STRANGE ACTION BY BANK ?

Discussion in 'Wales' started by BRITWALES_UK_GCC, Feb 24, 2014.

  1. BRITWALES_UK_GCC

    BRITWALES_UK_GCC UKBF Newcomer Free Member

    38 0
    I am amazed that a Cardiff bank sent a letter, without prior phone call or meeting, to an Entrepreneur who had his own funding and equipped rented premises then employed staff. Within 3 months his business sales' revenue will commence incoming for orders of produce currently requiring growth. No money is required from banks and he still has funds to continue operation, however his bank's letter stated they are going to close his business account, without reason. Could this sudden strange action be because he used his money to set up and employ staff plus still has plenty of funds but will not receive incoming revenue for 3 months ?
    Have you ever heard of this being done to entrepreneurs with capital ?
     
    Posted: Feb 24, 2014 By: BRITWALES_UK_GCC Member since: Jun 15, 2011
    #1
  2. Bob

    Bob UKBF Big Shot Free Member

    3,668 929
    Could there be an issue over the source of the money used to fund the business?
     
    Posted: Feb 24, 2014 By: Bob Member since: Jul 24, 2009
    #2
  3. BRITWALES_UK_GCC

    BRITWALES_UK_GCC UKBF Newcomer Free Member

    38 0
    Thank you - the source of his funds was shown prior to opening a biz account and he is a British subject.
    He naturally made an appointment to visit the bank staff who wrote his letter on a Friday, then was off duty a couple of days as a weekend.
    Surely a valid reason will be given eventually and I shall post it here.
     
    Posted: Feb 24, 2014 By: BRITWALES_UK_GCC Member since: Jun 15, 2011
    #3
  4. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    4,586 1,290
    Their action is nothing to do with the reason that you have suggested although I have no idea why they have refused to open an account but they obviously feel that they have good reasons.

    Perhaps it's to do with the company's owner or the products that they will be involved in
     
    Posted: Feb 24, 2014 By: Ian J Member since: Nov 6, 2004
    #4
  5. roydmoorian

    roydmoorian UKBF Ace Full Member - Verified Business

    1,947 340
    If I read the opening post correctly the bank DID open an account but then decided to close it without explanation.

    Nothing banks do can any longer surprise me - "good banking" and "good business" are two very different things
     
    Posted: Feb 24, 2014 By: roydmoorian Member since: Nov 6, 2009
    #5
  6. IanG

    IanG UKBF Enthusiast Free Member

    960 203
    If he's set up and is currently paying wages with no income, he must have lots of money.

    I think the banks prefer people they can screw in the to the ground and fleece.
     
    Posted: Feb 24, 2014 By: IanG Member since: May 8, 2011
    #6
  7. BRITWALES_UK_GCC

    BRITWALES_UK_GCC UKBF Newcomer Free Member

    38 0
    Yes they uttered being pleased with his venture and admired his vision.
    The first chap to aim at doing what he has organised using his system.
    He is about to employ staff to handle the grown produce when ready so will train them up first.
    He has had the biz bank account a couple of months. Thank you for responses.
     
    Posted: Feb 25, 2014 By: BRITWALES_UK_GCC Member since: Jun 15, 2011
    #7