Limited Company Bank / Business Acct

[FND Property]

After some advice regarding business bank accounts for a limited company.

Business model is flipping property, i.e. to cash buy residential property, renovate and sell on for a profit.

In relation to a bank account, transactions will be limited to:

· Holding all original money in the account ready for purchase, transfer to seller upon sale

· Paying solicitor fee’s, searches, survey etc

· Direct Debits paying utilities on a monthly basis

· Using debit card / cash withdrawals to pay for materials / labour

· Credit the account with the proceeds of the sale

Then start over at the beginning for next property.

HSBC calculated the annual fee at approx £750 as they take a % of cash paid into the acct (proceeds of the sale) as well as smaller fee’s / charges of other transactions.

There must be a cheaper / better way?

I'm tepted to use a personal account in all of our names, however, I have read that this may cause issues when buying / selling in the account isnt in the name of the limited company.

 

[Longterminvestor]

This is typical of business banking, charging fees based on money going in and out and the number of transactions. It is the same work for a £1 transfer as it is for a £1m transfer and I dont believe this rubbish about fees for the cost of protection against fraud, etc. Money laundering will already have been done before the funds are paid. Surely there must be a specific property related bank account your can use?

 

[diyhelp]

I have a business account which only charges a set fee per month - then again there are not huge amounts of money going in and out on a regular basis. Seems like the banks taking advantage in my view - after all, they get to use your capital to fund loans.

 

[FND Property]

I have a business account which only charges a set fee per month - then again there are not huge amounts of money going in and out on a regular basis. Seems like the banks taking advantage in my view - after all, they get to use your capital to fund loans.

Whi do you do your business banking with?

 

[FWL]

Try Santander

 

[FND Property]

I alrready tried them but they only provide business accounts for Ltd co's with 2 or less directors, we have 3.

 

[nmb]

Hopefully this list will help:-

https://www.money.co.uk/current-accounts/business-bank-accounts.htm