chantal started this topic @ 10:37 on 20/09/2004
Hello. My bank lent me some money recently and then retracted their offer the same day because the lending dept were unhappy about my telephone-transferring funds over a period of time from my personal account to my business account and back again, sometimes once or twice a day, usually at fortnightly or monthly intervals. They think I've been doing this to inflate the level of trading in my business account. However, though I've had the account over a year I never have actually traded, and never pretended to have done, but rather have been building the company up to a point where it can now begin trading by this Christmas. The truthful -- perhaps naive -- reason for my telephone-transferring funds is simply to make what would otherwise appear to be pretty much a dormant business account seem at least alive so I wouldn't be asked by the bank to close it for inactivity. I have a meeting with the lending dept in a few days in order to explain myself. I feel like I'm on trial -- and I really do need to borrow money from them for my business now. What should I say to them? I'm worried! Many thanks in advance, Chantal.
RE: raising finance
James Smith | 20/09/2004 11:06 AM
Chantal,
Just explain why you have done this.
It does seem rather odd behaviour to be pushing money between accounts without any real spending on either side.
Its the sort of thing that their money laundering software would pick up as an unusual set of transactions and quire rightly they are asking why on earth are you doing this! It does seem totally pointless, and they are quite correct to question you.
Just explain why and no more will probably be said on the matter.
Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: raising finance
julesbrad | 20/09/2004 04:04 PM
And why not print out a copy of your original post and the replies from this forum to show you have been making an effort to find out if you have been doing anything wrong
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www.wobbleg.com - stop tables and chairs wobbling
RE: raising finance
chantal | 20/09/2004 04:30 PM
Excellent advice from all. My whole point is that I fully intend to tell the truth rather than concoct a story but I was worried about how silly the truth might sound. However your responses have made me feel more confident. Thanks again.