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Hi i am in the process of selling my Ltd Company and the buyer is very concerned about the bank situation he thinks there is a possibility the rental std payments will be
adversly affected , every one i asked said there will not be a problem, i need to re assure him, any comments appreciated thank JohnRe: Coop Bank failure
what do you mean by “rental standard payments” ?
any possible bank failure will not affect your business. Just like any limited company they would call in the receivers and only people who are owed money by the bank would be affected
if you are renting a building to the bank then yes it could affect you but they may close it even if they continue tradingDave
Re: Coop Bank failure
std ie standing orders from rental customers what happens will another bank keep on taking them
Re: Coop Bank failure
Is your business bank account with Co-op or do some of your rental customers bank with them?
Re: Coop Bank failure
Even short term the receivers would step in and keep the business going and then find another bank to take the accounts over. All customer accounts and money cannot be touched by any creditors and it would be covered by bank compensation scheme. Anyway if the person buying the business is worried just move banks
Dave
Re: Coop Bank failure
hi thanks for your input , yes i have three coop accounts , unfortunately i would have to contact each rental customer individually to sign them over to a new account which i would prefer to avoid
Re: Coop Bank failure
I agree with other comments, there is no need to switch banks, as sort codes and account numbers will be transferred to the bank that buys the cooperative bank business. In the unlikely event no buyer is found, the government is sure to step in to keep it afloat, as it has done with RBS and other banks in the past.
Re: Coop Bank failure
The new owner of the business would have to contact all rental customers and issue them with the new bank details, ss he will need to set up a new business account in his name for the limited company ? and also he would have to apply for a consumer credit licence too ?
Re: Coop Bank failure
If the limited company is being sold, I would have thought existing bank accounts would transfer automatically to the new owners. The only banking formality should be to notify the bank of the change to authorised signatories and the new contact details. I presume the consumer credit licenses would remain with the company as well.
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