|
07-18-2016
| Junior Member | | Join Date: Apr 2015
Posts: 43
Thanks: 17
Thanked 6 Times in 6 Posts
Activity: 0% Longevity: 52% | | Bank asking where the money comes from and about my business
Hello there,
I have been withdrawing on a daiy basis around £450 to my bank account for the last 4 months from various different stealth accounts.
Today, I have received a letter home regarding the transactions like where do I get the money from and what business do I own.
I was going to say, I have a business in another country but they send me the money through Paypal then I withdraw through the bank. Which is basically divident. But the stealth ebay account names are different and Im sure it will show up on the each transactions.
So can you guys please advise, what can i tell my bank about the business i own and where the money comes from?
Thanks.
|
The complete step-by-step guide to get back to selling today!
| |
07-18-2016
| | Executive [VIP] | | Join Date: Jan 2015
Posts: 1,229
Thanks: 270
Thanked 460 Times in 264 Posts
Activity: 0% Longevity: 53% | | Re: Bank asking where the money comes from and about my business
Out of curiosity, what bank are we talking about?
|
07-18-2016
| | Executive [VIP] | | Join Date: Sep 2007
Posts: 42,343
Thanks: 5,612
Thanked 9,142 Times in 7,106 Posts
Activity: 0% Longevity: 96% | | Re: Bank asking where the money comes from and about my business
What type of account was being used?
That is a lot activity and the bank is naturally curious.
__________________ REAP WHAT YOU SOW. LIFE IS SO NOT FAIR. |
07-18-2016
| | Executive [VIP] | | Join Date: Dec 2009
Posts: 75,855
Thanks: 5,926
Thanked 8,909 Times in 8,202 Posts
Activity: 99% Longevity: 83% | | Re: Bank asking where the money comes from and about my business
@OP, if you are not using a business current (a.k.a chequing) account, bank is likely going to be asking these kind of questions with stream of money coming in and out.
Was the letter you received registered?
|
07-18-2016
| Junior Member
Threadstarter  
| | Join Date: Apr 2015
Posts: 43
Thanks: 17
Thanked 6 Times in 6 Posts
Activity: 0% Longevity: 52% | | Re: Bank asking where the money comes from and about my business
It's a lloyds bank and it has been asked mainly about the withdrwal from paypal as its clearly stated on the letter.
|
07-18-2016
| | Executive [VIP] | | Join Date: Sep 2007
Posts: 42,343
Thanks: 5,612
Thanked 9,142 Times in 7,106 Posts
Activity: 0% Longevity: 96% | | Re: Bank asking where the money comes from and about my business
Typical llloyds behaviour.
Is it a basic or current account?
__________________ REAP WHAT YOU SOW. LIFE IS SO NOT FAIR. |
07-18-2016
| Junior Member
Threadstarter  
| | Join Date: Apr 2015
Posts: 43
Thanks: 17
Thanked 6 Times in 6 Posts
Activity: 0% Longevity: 52% | | Re: Bank asking where the money comes from and about my business
Its a current account & Can I just tell them Im doing a small ebay business. Would they be okay with that or would they ask alot of information.
Just wondering, thanks
|
07-18-2016
| Senior Member | | Join Date: Feb 2016
Posts: 265
Thanks: 41
Thanked 48 Times in 46 Posts
Activity: 0% Longevity: 47% | | Re: Bank asking where the money comes from and about my business
I think that might be your best bet. You have an eBay business that sells a lot of small items and thats why there are a lot of transactions. But you should also not withdraw daily. I know it might effect your business but thats too many deposits in a short amount of time from so many accounts.
|
07-19-2016
| | Executive [VIP] | | Join Date: Jan 2015
Posts: 1,229
Thanks: 270
Thanked 460 Times in 264 Posts
Activity: 0% Longevity: 53% | | Re: Bank asking where the money comes from and about my business
****ing Lloyds, ruining it for errbody. As usual.
|
07-19-2016
| Senior Member | | Join Date: Aug 2014
Posts: 327
Thanks: 43
Thanked 92 Times in 52 Posts
Activity: 0% Longevity: 56% | | Re: Bank asking where the money comes from and about my business
I work in financial services . It's highly advisable to be honest (partially). Banks tend not to like deception. Say that its for ebay and that you are running accounts with alias' for your own security purposes, however there is a clear audit trail and proof of ownership should they need it.
It is likely that thay could then ask you to open a business account, to which you could say that a business account is not practical. They could then force you and that would be your time to move on.
The above is far better than lying and commuting fraud to a financial institution.
Hope that helps.
| The Following 5 Users Say Thank You to Kiroshi For This Useful Post: | |
07-19-2016
| | Executive [VIP] | | Join Date: Jan 2015
Posts: 1,229
Thanks: 270
Thanked 460 Times in 264 Posts
Activity: 0% Longevity: 53% | | Re: Bank asking where the money comes from and about my business
I mean, if you are honest and bank ADVISES you to open business account, surely thats good advice and perhaps work with the bank rather than walk away because something forced you to be "more legit"?
I don't understand whats so bad about having busienss account with a bank, if you are moving business money and are a business? Surey its good to have a nice relationship with bank and work with them, rather than hop from bank to bank every time they send you a letter?
Unless you change your banking patterns and spread your money between accounts, I can see this problem happening again in the future. Unless you suddenly want to make less money than you are making now?
|
07-19-2016
| | Executive [VIP] | | Join Date: Sep 2007
Posts: 42,343
Thanks: 5,612
Thanked 9,142 Times in 7,106 Posts
Activity: 0% Longevity: 96% | | Re: Bank asking where the money comes from and about my business
Haidukken
The basic tenet is correct.
However, where users have family members involved with their "stealth" activity, a friendly relationship with a bank might not be feasible.
Despite not being resident permanently in the UK, I have business accounts and sound working relationships with my UKmbanks. The stealth me is not so different from the real me, if you get my drift.
The issue happens when the truth is stretched. Few banks will go along with that type of business.
My UK banks accept to never allow paypal to touch what is not their business. i never gave paypal the OK. For us, it is a great convenience to be on good terms with our banks.
__________________ REAP WHAT YOU SOW. LIFE IS SO NOT FAIR. | The Following User Says Thank You to GreenBean For This Useful Post: | |
07-19-2016
| Junior Member | | Join Date: Mar 2012
Posts: 140
Thanks: 2
Thanked 5 Times in 3 Posts
Activity: 0% Longevity: 69% | | Re: Bank asking where the money comes from and about my business
I've just got a letter from sainsburys bank asking why there is so much money coming in as its a personal account. Time to move on :(
|
07-19-2016
| Senior Member | | Join Date: Aug 2012
Posts: 6,123
Thanks: 1,110
Thanked 1,655 Times in 1,333 Posts
Activity: 0% Longevity: 67% | | Re: Bank asking where the money comes from and about my business Quote:
Originally Posted by jjscruff I've just got a letter from sainsburys bank asking why there is so much money coming in as its a personal account. Time to move on :( | You don't move on from such situations, you find a long term solution. Spreading sales across multiple accounts is a good solution, or getting a business bank is a good solution.
By moving on to another bank, you will only get the same slack from them, and then you will become a bank gypsy - if there is such a thing. | The Following 4 Users Say Thank You to Play For This Useful Post: | |
07-19-2016
| | Executive [VIP] | | Join Date: Sep 2007
Posts: 42,343
Thanks: 5,612
Thanked 9,142 Times in 7,106 Posts
Activity: 0% Longevity: 96% | | Re: Bank asking where the money comes from and about my business
Oh I like THAT.... a bank gypsy.
In today's economic climate, it would be the most risly title to have.
Imagine being blacklisted by banks simply because of needing to do stealth paypal.
For sure, a better working solution is needed as Play suggests.
__________________ REAP WHAT YOU SOW. LIFE IS SO NOT FAIR. |
07-19-2016
| Junior Member
Threadstarter  
| | Join Date: Apr 2015
Posts: 43
Thanks: 17
Thanked 6 Times in 6 Posts
Activity: 0% Longevity: 52% | | Re: Bank asking where the money comes from and about my business
I have been to the bank today to sort out this mess and they have contacted another department and asked them about this and they printed the statement questioning about each trasactions. I have managed to answer the questions but then they have told me, they will send the answers I have given to them to the relevent department and they will get back to me.
But then They have told me to open up a business account & can I register for business or doest it involve lot of procesures. I mean do i have to have VAT registered to open up a business account?
Thanks
|
07-19-2016
| Subscribed [VIP] | | Join Date: Aug 2015
Posts: 110
Thanks: 31
Thanked 32 Times in 28 Posts
Activity: 0% Longevity: 49% | | Re: Bank asking where the money comes from and about my business
You tripped their fraud alerts. Dont suppose you use a branch to do your transactions do you?
Opening a Business Banking Account is very simple, you certainly dont have to be VAT registered but i would suggest you book an appointment with their Business Advisor and get some further details. For a Sole Trader you generally only need ID, a document from HMRC and a company letter head.
You will need to pay for Business Banking and fees will vary with most banks offering free introductory offers, so shop about.
|
07-19-2016
| | Executive [VIP] | | Join Date: Jan 2015
Posts: 1,229
Thanks: 270
Thanked 460 Times in 264 Posts
Activity: 0% Longevity: 53% | | Re: Bank asking where the money comes from and about my business
Just a question... Hows your relationship with our lovely Queens financial services? Do you pay taxes and does your paperwork add up?
|
07-19-2016
| Senior Member | | Join Date: Aug 2012
Posts: 6,123
Thanks: 1,110
Thanked 1,655 Times in 1,333 Posts
Activity: 0% Longevity: 67% | | Re: Bank asking where the money comes from and about my business
Some major banks won't need anything from you to upgrade to a business account as a sole trader. I remember Barclays told me I could do it on the phone with them, no need to come into branch, no ID, etc.
It really isn't as complicated as some make it out to be. If in doubt, just call the relevant bank between 9am - 5pm and they will put your mind at ease. | The Following User Says Thank You to Play For This Useful Post: | |
07-21-2016
| Junior Member | | Join Date: Mar 2012
Posts: 140
Thanks: 2
Thanked 5 Times in 3 Posts
Activity: 0% Longevity: 69% | | Re: Bank asking where the money comes from and about my business Quote:
Originally Posted by Play You don't move on from such situations, you find a long term solution. Spreading sales across multiple accounts is a good solution, or getting a business bank is a good solution.
By moving on to another bank, you will only get the same slack from them, and then you will become a bank gypsy - if there is such a thing. | spreading sales means listing similar products on multiple platforms and increasing possibility of linkage
i tried to sign up to a natwest business bank today but they said they wouldn't allow me to have another business bank account open with another bank
How to work around this?
|
07-21-2016
| | Executive [VIP] | | Join Date: Jan 2015
Posts: 1,229
Thanks: 270
Thanked 460 Times in 264 Posts
Activity: 0% Longevity: 53% | | Re: Bank asking where the money comes from and about my business
Could you start paying your suppliers with Paypal? Perhaps could move less money into bank account and directly pay suppliers from PP?
Just an idea, as I don't know what you sell.
How many accounts do you have at the moment and how many products are you selling? Surely you could make listings look different and work on it, to try and avoid linking of the account?
Other people here do it, so perhaps its worth a shot.
It all depends how many accounts you are already selling on and how many products you are trying to sell I guess- Its all about scalability and how creative you can be, whilst pushing the limits and taking all the right steps in order to build sustainable business.
Just as an example, I can say that when I started selling on eBay I did it has a hobby and never took it seriously- Then I started making serious money and 2 weeks later I got kicked off.
I had 2 days to think about my situation and then I decided to learn from my mistakes and really imporve my business model as a whole. Been successful ever since.
These little problems are sort of reality checks for all of us- How well is out business set up and how sustainable the whole thing is.
Take it as a little learning curve and take your time solving the problem. If you take shortcuts, you will end up in a same situation or worse.
Solve the problem, don't try to avoid it.
|
07-21-2016
| | Senior Member | | Join Date: Jun 2015
Posts: 225
Thanks: 7
Thanked 37 Times in 25 Posts
Activity: 0% Longevity: 51% | | Re: Bank asking where the money comes from and about my business Quote:
Originally Posted by Play then you will become a bank gypsy - if there is such a thing. | HAH this is great. I feel like this when opening new accounts.
|
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts HTML code is Off | | | |