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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.

Re: Bank asking where the money comes from and about my business
 

Out of curiosity, what bank are we talking about?

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.

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?

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.

Re: Bank asking where the money comes from and about my business
 

Typical llloyds behaviour.

Is it a basic or current account?

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

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.

Re: Bank asking where the money comes from and about my business
 

****ing Lloyds, ruining it for errbody. As usual.

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.

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?

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.

:comp5:

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 :(

Re: Bank asking where the money comes from and about my business
 

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. :pout:

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.

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

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.

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?

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. :)

Re: Bank asking where the money comes from and about my business
 

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?

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.

Re: Bank asking where the money comes from and about my business
 

HAH this is great. I feel like this when opening new accounts.