Personal Account Switch to Business Account
Discussion
I am a sole trader currently and have been using a Santander Personal Current Account for my finances. I am going to be setting the same company up as a LTD soon so will need to get a business account.
I have quite a few standing order set up from regular customers and asking them all to switch account will be problematic, but it appears that you cannot use CASS to switch a personal account to a business account - Monzo said they won't do it anyway, and I can find an info that says you can do it (although the Google AI answer says you can but that seems to be wrong as often as it's right!)
Does anyone know a bank that will do this?
Alternatively I can switch my Santander personal account into a Santander business one but I wouldn't want to keep their account as it's not as good as other, so could then switch business - business account using CASS I think? would I need to keep the Santander account for any length of time before doing that?
I have quite a few standing order set up from regular customers and asking them all to switch account will be problematic, but it appears that you cannot use CASS to switch a personal account to a business account - Monzo said they won't do it anyway, and I can find an info that says you can do it (although the Google AI answer says you can but that seems to be wrong as often as it's right!)
Does anyone know a bank that will do this?
Alternatively I can switch my Santander personal account into a Santander business one but I wouldn't want to keep their account as it's not as good as other, so could then switch business - business account using CASS I think? would I need to keep the Santander account for any length of time before doing that?
In the UK at least, there isn't an easy way to do this and I don't know of any banks that offer the service like with domestic accounts. Mine was a few years ago and I was even staying with the same bank and they would not just "upgrade" the account, only open a new one.
I would suggest having the pain of letting the customers know (but keep your old account open for a year or so) and then contacting anyone who is still paying into the old account each month to "remind" them.
Just transfer the money from the old account into the new one, which is fine as you have an explanation and a paper trail of the old account.
After a few months you would expect everyone to have updated. I had a couple that had not and just sent them an email saying that any money paid to the old account after X date would be as good as sending it to the incorrect account and would not be credited/refunded etc as we would no longer have access to funds sent to the old account after that date and this did the trick.
I would suggest having the pain of letting the customers know (but keep your old account open for a year or so) and then contacting anyone who is still paying into the old account each month to "remind" them.
Just transfer the money from the old account into the new one, which is fine as you have an explanation and a paper trail of the old account.
After a few months you would expect everyone to have updated. I had a couple that had not and just sent them an email saying that any money paid to the old account after X date would be as good as sending it to the incorrect account and would not be credited/refunded etc as we would no longer have access to funds sent to the old account after that date and this did the trick.
Simpo Two said:
Can't you just open a business account with whoever you like best, then tell your customers to make payments into that instead of the old personal one?
Well yes, but, what I have set up involves subscriptions that I will inevitably lose some when I ask every to switch,TheBALDpuma said:
I am a sole trader currently and have been using a Santander Personal Current Account for my finances. I am going to be setting the same company up as a LTD soon so will need to get a business account.
I have quite a few standing order set up from regular customers and asking them all to switch account will be problematic, but it appears that you cannot use CASS to switch a personal account to a business account - Monzo said they won't do it anyway, and I can find an info that says you can do it (although the Google AI answer says you can but that seems to be wrong as often as it's right!)
Does anyone know a bank that will do this?
Alternatively I can switch my Santander personal account into a Santander business one but I wouldn't want to keep their account as it's not as good as other, so could then switch business - business account using CASS I think? would I need to keep the Santander account for any length of time before doing that?
This is quite messy.I have quite a few standing order set up from regular customers and asking them all to switch account will be problematic, but it appears that you cannot use CASS to switch a personal account to a business account - Monzo said they won't do it anyway, and I can find an info that says you can do it (although the Google AI answer says you can but that seems to be wrong as often as it's right!)
Does anyone know a bank that will do this?
Alternatively I can switch my Santander personal account into a Santander business one but I wouldn't want to keep their account as it's not as good as other, so could then switch business - business account using CASS I think? would I need to keep the Santander account for any length of time before doing that?
The real issue is, you as a 'natural person' will be a different identity to your company.
You as Mr B Puma don't really have any business taking money from people for something provided by Bald Puma LTD.
That would be you persornally being some sort of intermediary.
The business is not the same thing as the company. The company is a legal entity, while the business is a trading activity.
If you can change your current account to 'business status' (which probably means paying for it these days?), maybe you could get the account renamed as 'Mr B Puma T/A Bald Puma' or something? Then perhaps you could use that account to re-sell BP LTD's goods or service to existing clients? As I understand it, but I could be wrong, an account so named would accept payments to either the personal name or the trading name.
Then move all your personal banking to another bank. Keep it totally separate.
Maybe if you change your existing to account to business and rename it as above, then after a while, incorporate as a LTD, there might be a way?
And set up a different account entirely for the LTD Co? Or maybe the account gets renamed again as 'PumaCo LTD t/a Bald Puma' when the business is transferred to the company?
I am not an expert, but I've had a few companies.
I think you need to research around 'incorporating an existing business'.
You certainly need to check everything I've said!
Keeping hold of a few customers who are only staying with you because of inertia might not be the most important thing in the long run?
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