There are so many reasons why you may decide to close a business banking account in the UK. The most common one is due to termination or collapse of the business itself. The process is easy, but you need to be well informed so that you don’t end up experiencing any issues. So far, there are several ways you can use. Follow the instructions below to ensure a swift closing process.
Factors to Consider before Closing a Business Bank Account
Before going through numerous ways, you can use to close your business bank account. There are several factors you need to consider. They include:
Make sure your balance is nil
You need to make sure that the business bank account balance is nil. The bank will only allow you to close our business bank account in the UK if there is neither an overdraft nor any balance available. In case you have an overdraft you will have to make a deposit equivalent to that amount, and if you have any balance left, you will have to make a withdrawal before proceeding.
Ensure you don’t have an existing business loan
As much as this is basic knowledge, some people tend to turn a blind eye and proceed with the closing process with an existing loan. You must repay your existing loan before making the request. Once you initiate the request of closing the business bank account, the bank will go through your financial records to ensure there is no existing loan taken by the account you want to close. If at all there is, your account termination request will be rejected until the completion of your existing loan.
Have all documents at hand
You should make sure that you have all the documents necessary to close the account. This usually depends on the bank’s rules and regulation of closing a business account. Most banks in the UK require you to have two documents that you will use for your identification, your chequebook, the debit card the bank issued, and your current residence address in the UK. Only take the chequebook with you if it was issued by the bank of the account you wish to close.
Have every signatories present listed in the account
Since you are dealing with a business account, there is a huge possibility that there are other corporate officers listed in the account. If so, make sure you bring them with you because you will need their signatures to close the account. It is mandatory even if you are the main account holder. For instance, if you were three people listed, and one person doesn’t show up, you will not be able to terminate the business account. In case of demise, you will need the relevant documents to indicate so before proceeding. Once everything mentioned above is in place, you can go ahead and terminate your business bank account.
Inform them of any activity you are expecting in the account
In case there are other activities that you expect to transact with the account before its termination, make sure you notify the bank. Such activities include payment of utility bills or any other monthly payments that you usually make. This will see to it that those payments are made before the business bank account is closed. You will thus have to withdraw the excess amount minus the utility bills so that once the payment is made, the business bank account remains nil.
Termination through the bank
The first method is to terminate your corporate account is through the bank branch. This is where you visit any of the bank branches with the documents above. You will have to fill an account termination form and submit it to the teller.
They will then request for your identification and any signees where applicable. Once you are done providing them with those documents, it will only take a few minutes for the account to close.
Some banks will notify you through various communication methods that the closure of your business bank account is successful. In case you did not withdraw the remaining amount from the bank, it will be handed over to you once the process is over.
Closure by post
You can also close your bank account through a post. You will first have to download the closure form for a current business account. Make sure you fill all the details and include all the required signatories. Submit the form and send your debit card and chequebook to the bank using their address.
Once you are done, you will wait for a notification that your business bank account has been terminated. You should include any attachments stated in the form. By doing so, you will make the process swift, and fast and in no time your corporate bank account will be closed.
Termination of a business bank account through a phone call
This is usually a rare case. However, some banks allow the termination of your bank account through a call. Before initiating the call, make sure that you have all the necessary documents. The process is usually much easier if you don’t have any signatories. In case you do, you will have to use the business bank termination form since you will need the signatures of the signatories.
You will also have to send them the chequebook and the debit card to finalize the process. In most cases, the phone call will only enable you to notify the bank that you want to close a particular business account. You will then have to download the account closure form, fill it, include the attachments then submit it for processing.
Closure of a business bank account is simple, especially if you have all the requirements. Confirm with the bank about the process and assemble everything before continuation of the process. Consider all the factors mentioned above before proceeding. You can then use any of the methods that best suit your needs. You should, however, ensure the bank allows that particular way before proceeding. This is because there are banks that only allow a personal visit to their branch for any termination.