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Q: I requested an appointment to see my business bank manager to set up a business account and find funding to grow my business. It took five weeks for me to get a call from his secretary to send in my business plan. I sent this in only to get a very rude letter telling me they were not interested in my business as a pilates and sports injuries therapst. Why would my bank not even make an appointment with me to arrange for a business account and discussion about a business loan? Is this standard banking practice or just bad practice?

Jan 25 2007

Answered by: Philip Wilkinson Ask a question

This seems to be unacceptable customer service, and you would be within your rights to complain to the Bank’s Head Office.

Business banking is now quite competitive, so it is best to contact a number of Banks to get their response to your request to open an account. Before you approach the Banks, you need to make sure that your business plan is going to convince people to invest in you and your business. Go to the Business Link for London website for a good business plan template to get you started, click here.

For articles and tips on choosing a bank for a business loan, visit the Business Link for London website, click here.

Alternatively, you could consider the Access to Finance programme, which is designed to assist London based businesses to raise finance to start up and develop their business. It’s heavily subsidised, which, if you qualified for the programme could pay towards providing consultancy support to produce a business or investment plan. For more information on Access to Finance, click here or contact Business Link for London on 0845 6000 787.

Comments [5]

Comment by Adam Wayland

Monday 19th February 2007

I would be interested to hear of other people who have had similar experiences. Is this a common occurrence I wonder? If you've had the same trouble or can give details of a positive banking experience, feel free to add your comments here.

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Comment by Heather Nelson

Monday 19th February 2007

A few years ago I received a letter from my bank telling me they had closed my account. On quering the reason, I was told it was because my account was overdrawn, by only about £100, I closed the account, but was very annoyed as I also had a savings account in the same bank, worth well over £2000 - So I moved everything to another bank!

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Comment by Adam Wayland

Tuesday 27th February 2007

This response was emailed to me by one of our readers:

'Depending on the bank, some business managers have 500 or more businesses within their portfolio. This makes it very difficult to provide customers with the level of service that is expected. Some banks also look at projection led business, start ups, less favourably than others. One can put the same proposal out to 5 or 6 banks and get three saying they are not interested and another three wanting the business. It can also depend on the level of experience of the business manager you approach - how good they are at putting the proposal together to get a "yes" out of the credit sanctioners.'

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Comment by Andrea Bretherton

Monday 28th May 2007

My bank has been absolutely wonderful, sorted my start up finance and the business advisor gave me excellent advice. I was let down and lied to by the buyer of my house so start up finance was urgently needed. The bank were wonderful and supportive, they let me have an overdraft to cover initial start up costs till the house sells, I would definitely recommend switching banks to the RBS, they've helped me a lot over the years.

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Comment by gary frost

Tuesday 22nd January 2008

We started the process of asking for a facility on our business account in Septemebr last year and to date it has still not been finailised.We have tried to run without the use of an overdraft facility , however this has proved difficult. Our Business Manager has promised the earth but nothing forthcoming. Will take the advice of the previous post.

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