Selling my 100% in a CC

[eitai2001]

Another situation has arised ... my business relationship manager says that WRT the overdraft, I will be liable for it until its paid off, even if she signs surety? Can this be the case? I am leaving the company, and somebody with more security is willing to take over suretyship ... surely there is something that can be done?

[Dave A]

Welcome to the wonderful world of banks. Once they've got you by the balls, they don't let go unless they're forced to.

Have the CC open a new bank account at another bank and close the account you're a surety for.

[eitai2001]

Welcome to the wonderful world of banks. Once they've got you by the balls, they don't let go unless they're forced to.

Have the CC open a new bank account at another bank and close the account you're a surety for.

Problem is we have an overdraft in use ... and so part of the deal is they take over the overdraft. After requesting to speak to their legal department, they changed their tone and now she must submit a personal balance sheet, and they'll look at changing.

They're dorf if they don't .... I have no assets in my name, everything in my mom's name ... so I'm sure they'll switch over surety, cause the new owners have personal assets.

[Dave A]

Just make sure you get a letter of release from the surety at the end of it all. Bankers love their belts and braces and in their view there's no harm in having you still tied in "just in case."

[jinxster]

Ok my 2c, with the overdraft, moving the bank account is still a good idea.

What I would do is, sell the company like you have, then instruct the new member to move the account within 6 months - 24 months depending on various factors you can decide.

Then check in periodically with the new owner to see how it is going until the account is moved.

Even if you use the same bank with another account. At least after 2 year you wont ever have a problem.

[eitai2001]

Ok my 2c, with the overdraft, moving the bank account is still a good idea.

What I would do is, sell the company like you have, then instruct the new member to move the account within 6 months - 24 months depending on various factors you can decide.

Then check in periodically with the new owner to see how it is going until the account is moved.

Even if you use the same bank with another account. At least after 2 year you wont ever have a problem.

Why though? If I get a letter from the bank releasing me as a surer, I don't see why. You must remember that a lot of our customers have our bank details saved on their internet banking, plus we will have to organize new merchant accounts and stuff ... it really is a big thing to change the account. I thought that once I get the surety changed, it should all be fine?

[jinxster]

Peace of mind? Probably isnt necessary that much

[eitai2001]

Peace of mind? Probably isnt necessary that much

Well once I get the letter from the bank, I will have the letter as a legal document, and a contract from the new owner as a legal document ... but more so the bank letter ... I think all should be fine thereafter. Remember, the bank account is held by a separate legal entity being my company.

[Dave A]

...then instruct the new member to move the account within 6 months - 24 months depending on various factors you can decide.

I'd suggest post transfer-of-ownership requirements are quite tricky to enforce and should be avoided at all costs. The honeymoon period tends to wear off quite quickly when it comes to sales of business.

[eitai2001]

Well guys ... after pushing the bank a bit ... they have finally agreed to transfer the surety ... now just waiting on the CK2 so we can fully transfer all supplier accounts and the actual bank account.