The Frustrations of Banking as a UK Entrepreneur

As an entrepreneur navigating the murky waters of UK banking, I've found myself increasingly frustrated with the processes and security checks that seem designed to hinder rather than help business progress. If you've faced similar banking issues as a business owner or are considering opening a business banking account, I hope my experiences can offer you some guidance and perhaps even some solace.

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The Chaos of Temporary Banking Restrictions

Over the last few days, my business operations have been thrown into disarray due to limitations and restrictions on our banking facilities. These issues have caused absolute chaos, especially when you're dealing with clients who expect to be paid on specific dates each month. A temporary banking restriction can wreak havoc, eroding confidence in your operations and damaging your reputation.

We experienced a similar issue about 20 months ago with Revolut, one of the online banks we used. As many entrepreneurs do, we opted for a bank that offered the quickest and easiest account setup. We started with Revolut, and there are plenty of other online options like Monzo, Cash plus, and Metro Bank. These banks are brilliant for micro businesses or startups due to their ease of use and swift account opening processes. However, we outgrew these facilities as our business expanded.

The Unexpected Explosion of Growth

Our turnover has increased exponentially in the past 12 months, growing between 10 to 20 times. This sudden growth raised alarm bells with our banks. Banks value stability and low risk; they are not prepared for a small business to make a seismic jump in growth. This led to an intense scrutiny from fraud teams, compliance checks, and security measures, which are all necessary for safety but can be agonisingly slow. What should ideally be a quick phone call to answer some questions and send in documentation turns into days of delays and back-and-forth.

With smaller banks, you often don't even have a customer service representative to talk to. Instead, you get chat facilities offering scripted responses from different operatives, which is maddeningly inefficient. Even with banks like Metro Bank, which we've also outgrown, resolving issues often requires physically going into a branch.

Communicating with Clients During Banking Issues

When payments are delayed in industries like investment, it causes panic. Transparency, honesty, and integrity—core values of our business—demand that we communicate these issues to our clients carefully. The goal is to reassure them, maintain trust, and manage expectations. Reputation is everything in business, so it's crucial to handle these communications delicately.

Lessons Learned and Recommendations

For my fellow entrepreneurs and business owners, here are some key takeaways:

Choose the Right Banking Facility: Talk to others in your industry about their banking experiences and recommendations. Have a vision for your business and pick a bank that can accommodate that growth. While we never imagined we'd grow so dramatically in the past year, it's essential to plan for potential growth.

Understand the Limits of Your Chosen Bank: If you start with a bank suitable for micro businesses, be aware that you may need to switch as you scale. Smaller banks can be ideal for lifestyle businesses, but may not support exponential growth without causing headaches.

Build a Relationship with Your Bank: Choose a bank that offers a relationship manager who can understand and support your business's needs. This can make a significant difference in resolving issues quickly and avoiding disruptions.

Communication is Key: If problems arise, communicate promptly and transparently with your clients. Keeping them in the loop helps maintain trust and confidence in your business.

We're currently navigating the arduous process of transitioning to new banking facilities while resolving issues with our existing ones. Once we've stabilised, we'll reassure our investors that these disruptions won't recur.

I hope my experiences provide some useful insights. If you have any questions or comments, feel free to drop me a line—I'll respond to everyone. And remember, if you believe in my mission, do give this a subscribed, like, and comment. More exposure means more funds raised and more children's lives saved, which is why I do this every day.

Stay positive, stay happy, and I'll see you again tomorrow.