Regardless of the company’s banking establishment, it is required to accede to a request to close a professional bank account. The company manager can contact his bank by telephone to inform it of his need, or he can send an e-mail or more formally proceed to send a letter. If the request to close the account is made by mail, it is preferable to send a registered letter with acknowledgement of receipt.
An advisor will probably be assigned; he will be there to accompany the company in its account closure process. This adviser will provide all the information required for the effective start of the pro account closure operation, and will be able to list the various documents to be provided for this purpose. So nothing very complicated!
In most cases, the application must be accompanied by the following supporting documents:
- A handwritten professional account closing letter signed by the legal representative of the company;
- A copy of a document proving the existence or identity of the company.
Without these various documents, the company cannot hope to see its request for closure succeed, let alone a transfer of its funds to a better bank.
Prior opening of an account in a new bank
If the company decides to close its account in order to change banks, it is prudent to open a business account at a new bank before starting the procedure to change banks. This will be accompanied by a formal request for a credit transfer to the company’s new bank account. Visit bank4pro.co.uk for more about opening a new business bank account. The two banks will then work together to ensure that the transfer is made in the best possible way. If the transfer takes place within the same banking network, the account number may even be retained by the client company along with the cheque book.
Cases of bank overdrafts or outstanding credits
Some banks, faced with a long-outstanding overdraft, may decide to terminate a client’s business bank account and set a notice period for settlement before closing.
When a company is in possession of a credit granted by the bank and has not yet closed it, the closure of a pro account cannot take place. The same applies to bank overdrafts. In such a context, there are two options available to the company director. He can choose to postpone the closing of the pro account, the time to make the necessary repayments, or he can apply for a loan from the new bank that will have to accompany him.
Precautions to take before closing a pro account
When the procedure for closing a business bank account is initiated, the company should leave nothing to chance. It must ensure that it no longer owes the bank anything financially or in terms of the means of payment that were provided to it. The closure must be total.
The terms of closure should therefore be consulted with the utmost care. This is a valuable aid in ensuring that there is no breach either on the part of the company or on the part of the bank.
Stopping and regularising bank movements
It must also be ensured, as soon as the decision is made to close a business account, those direct debits, transfers and any other activity ceases at the business bank account level. It will no longer be necessary to sign cheques linked to this bank, to ensure that all those issued have already been withdrawn and finally to inform key employees of the change that must take place.
Indeed, such a precaution not only secures the procedure for closing the pro account, but also ensures that the company does not suffer any damage (non-payment to suppliers, non-payment of salaries, and impossibility of cashing or receiving payments) following the cessation of the operation of the account.
Leaving a provision in the business bank account to cover any closing or transfer costs that the company may have to bear is also an excellent initiative.