Business banking - what a pain in the balls!

[Ana_X]

Ladies I need to pick your brains for a little while because I'm going around the bend here looking for answers.

Since starting AW I've always had two current accounts, one I used for business/cash in, the other was for personal to pay my drawings into and this method has always served me well for keeping things in order and my account keeping easier.

Just last week however when paying in cash to the account I use for business I asked the cashier to then transfer over £300 from the total I gave him to my other account. He looked at me bemused and asked why I wanted to do it like that (in hindsight, a li'll cheeky of him I think) and I slipped and said 'Ones for business, one's for personal'.

Well, He told me that what I'm doing is against the bank's TOS for my current accounts and that if my account were to be reviewed any time soon I could have both of them closed - which to me came off as a threat rather than friendly advice. Before I left he thrust a business banking leaflet in my hand and then I high tailed it out of there.

The problem is I can't get a business account and that's all I want to do! I want one so I can be just as legitimate as every other honest sole trader, but mention to a bank that you're in adult entertainment and you meet clients face to face and their heads spin before giving you a cold shoulder. I've tried telling a couple of banks that I'm a 'lifestyle consultant', my request to open a business account has gone to underwriters on two occasions and both times I've been asked to supply:

My accounts for this year and projections for next year
My business plan
RESEARCH I've done into this service
Screen shots of my online advertising
And... this is the killer - client testimonials!

I don't want credit nor any loans, I need no financing at all because I'm completely solvent, all I ask is to be permitted the use of a business account just like any other person, for money in and drawings out. Why is this so damn hard for them to grasp?

Ladies, how did you go about getting yourself a business account? Did you have to go down the 'made up' job route or is there a bank out there which will happily accept my application to bank my adult industry earned hundreds because our money is just as good as anyone elses?

I'm getting rather exhausted and disheartened over finding a solution to this issue.

Thanks x

[Trinity-Belle]

I've taken advice on this very issue from my accountant and just to be sure I have spoken to my bank to make sure what I am doing is okay with them as I pay in large amounts of cash at fairly regular intervals.

Like you, I run two accounts, both of them personal current accounts. I pay all of my earnings into one, then I transfer money out of that account (usually the day I pay it in!) into my other current account and my savings accounts or where ever I need the money distributed to. All of my personal stuff comes out of a separate current account.

I also keep two credit cards (well, three actually... but one of them hardly gets used) again one is for business and the other for personal. The business one gets paid be a DD from my "business" bank account and the other from a DD in my "personal" bank account. The only other payments which regularly comes out of my "business" account are my DD for my national insurance stamp and twice a year my income tax payments. Otherwise it is just incidentals really as most stuff I buy I buy on my "business" credit card, which again is actually a personal credit card.

Both my bank accounts are with the same bank (First Direct) and both are their personal "1st account" type... they don't actually do business banking, but HSBC who own First Direct do.

Like I said... I spoke to my accountant AND to my bank about this, and also went to see an HSBC small business advisor just to be absolutely sure.

My accountant said that a business as simple as mine didn't need a proper business account and that actually it would cost me money to use one as they charge for their services where as personal accounts are generally free.

HSBC said that they would not really be interested in giving me a business account unless I am either paying in a lot of cheques, am VAT registered or am paying staff payroll from my bank account, none of which I do. Beyond that, for the turnover I have and the number of transactions I make each month they recommended that I continue to use a personal current account.

I spoke to First Direct and told them what I was doing and why I was doing it (i.e. to keep my income separate from my personal spending just to make accounting easier) and they were fine with it. They said that they would only get twitchy about it if I was paying in more than £10K in cash in one go, otherwise their view was the same as HSBC's.

Hope this helps.
x

[Ana_X]

Thanks Trinity, I think I might pop into a HSBC branc and have a chat, although I've had a look at their current accounts, checked the 'are you eligable' page then 'things you need to know' and this showed up when I did a search for Business using Ctrl+f on the page

"The product/service you have with us should not be
used for business purposes. No third party will have
any rights under the Terms."

Maybe I just need to grit my teeth and hang in there with Halifax and carry on juggling current accounts. I don't know.

[Trinity-Belle]

What's the worst that can happen? It's not like they can withhold your money or anything (unlike AW)

Maybe just don't mention it in future and if some smart-ass asks you why you want to move your money around, tell them it's because you're laundering drug money so you have to keep things moving to put the fuzz off your trail.

[Scotty_Hottie]

When I started camming I happened to have a spare bank account with a separate bank, so that became my 'business' account, and I do things much the same as Trinity.

[Ana_X]

What's the worst that can happen? It's not like they can withhold your money or anything (unlike AW)

Maybe just don't mention it in future and if some smart-ass asks you why you want to move your money around, tell them it's because you're laundering drug money so you have to keep things moving to put the fuzz off your trail.

I guess it's worry about credibility in future, when the time comes that I want to get my own studio up and running, or buy a house. Maybe I am worrying a little too much but so long as I am paying my dues and keeping records I guess I shouldn't.

And yeah! Usually I'm pretty quick off the mark with folk being shitty but it was 10am and I'd left my head in bed.

[Trinity-Belle]

10am???? What were you thinking of going into town in the middle of the night!?!?

Seriously though... for a loan for the future, what you will need is three years worth of accounts prepared by an accountant. They may also want to see bank statements from your personal account, but not your business account. So long has you have a full set of books signed off by an accountant you should be fine. x

[iluvjem]

As a former Bank employee yes if they suspect you are using a current account for business they will want t move you on to a business account. It will be in there terms and conditions and certainly the bank I worked for would just change your account if you couldn't prove otherwise.

I have a business account and it was opened solely for an adult business (online store). You could easily just put cams down as online media entertainment or something rather vague like that.

It's really more of a risk for escorts who earn only cash. Those accounts are the type that will automatically flag up (mainly for crime reasons). On a more cautious note if you only pay cash into your bank account and when questioned why go all weird with "ehs" and such like because you dont want to mention your job..well dont. That sort of behaviour gets reported as suspicious - for crime reasons again. You are of course doing nothing wrong so who cares but I'm sure some of you would rather not go through that lol we all have our "back up jobs" the jobs we tell our relatives and friends we do, its no different when talking to bank.

[Trinity-Belle]

As a former Bank employee...

What... so you used to help gentlemen with their banking and now you help them with their wan.......

[iluvjem]

As a former Bank employee...

What... so you used to help gentlemen with their banking and now you help them with their wan.......

That is correct ha