smallbusiness.co.uk: Helping your business think big

Short-term finance

Rory Earley, CEO of Capital for Enterprise, explores the options...
Have your say »

RSS

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

Email a friend

Answered by: 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.

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.

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.

Report this comment

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!

Report this comment

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.'

Report this comment

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.

Report this comment

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.

Report this comment

Polls

Questions & Answers

Legal

Christine Hereward, Howard Kennedy LLP Ask a question

Accounts

Deepaman Prabhakar, TaxClaim Accountants Ask a question

Public Relations

Paul Stallard, Berkeley PR
Ask a question

News

smallbusiness.co.uk: Helping your business think big

Help with be available for small businesses

Government advice scheme to help SMEs

A government scheme designed to help up to 26,000 of England’s brightest small businesses has launched.

Small businesses best at customer service

Four fifths of consumers in the UK believe that small, independently or locally-owned businesses provide the best customer service experience.

FSB demands broadband improvements for rural businesses

The implementaton of superfast broadband in less populated areas will revitalise the rural economy, says the Federation of Small Businesses.

Tech issues top office frustration list

Technical problems including email and internet failures have been voted the most stressful office issue.

Apprenticeships proving effective for SMEs

Britain’s apprentices are getting promoted, improving their confidence and taking on more responsibility in the workplace, according to a report.

SME revenue fall a ‘blip’

Small business domestic turnover decreased by 7 per cent between Q4 2011 and Q1 2012, research finds.

Calls to address sickness absence

The government is being urged to reinvigorate its efforts to tackle sickness absence.

Jobs outlook promising for SMEs

The short-term jobs outlook has ‘turned positive’ for the first time in more than a year, research finds.

Queen's Speech 'missed opportunity' for business

The Queen’s speech could have delivered more for enterprise, according to business commentators.

Businesses to comply with new website privacy laws

UK small businesses could face fines of up to £500,000 if they fail to meet tough new website privacy laws which come into force this month.

SMEs could be in line for tax rebate

Hundreds of thousands of UK small business owners are due a sizeable tax rebate from HMRC, according to a tax specialist.

Guides & Tips

Small businesses should take care to choose the right solicitor

Choosing a solicitor: How to avoid the pitfalls

Stephen Newman, managing partner of Baxter Caulfield Solicitors, gives advice on taking on a solicitor.

Make sure you get your HR right from the start

HR for start-ups – how to get it right

Margery McBain, MD of Gravitate HR, outlines the key human resources considerations for a small business owners starting up.

Insolvency is clearly a harrowing time, but there are certain procedures that must be undertaken

How to approach insolvency

Mark Wilkinson, of law firm Lee & Priestley, explains the insolvency procedure and the possibility of continuing to trade.

Store

FT Guide to Personal Tax

The FT Guide to Personal Tax is published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and John Bloxham, this unique guide gives step-by-step advice to completing your tax return as well as over 230 tax-saving tips.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.

FT Guide to Business Start Up

The FT Guide to Business Start Up 2012, published by Pearson Education, is written by Sara Williams, CEO of Vitesse Media Plc. This unique guide has sold over two million copies. It offers practical advice about starting and running your own business.