HSBC Business banking - negative experience

[Paul2412 10]

We have recently incorporated a company and wanted to open a business account and take out a loan of £15K.

 

As I've been with HSBC personal banking for a very long time, I approached them in March.

 

I applied for an account and loan over the internet. No confirmation email was received, heard nothing for a week. Called them and asked what the status was, they said that it was being dealt with. Another week goes by, the guy calls me and asks about the business etc and for the loan, asks for the business plan, last 3 months bank statements and finance projections which we sent later that day.

 

After chasing for a decision 3 times, I get a call stating that they will only be prepared to give £5K loan. To get this, we needed to pay £80 EACH as a directors guarantee deposit and a £100 arrangement fee.

 

Things were not looking good elsewhere, so we made the decision to continue. I phoned 9 times to say we wish to proceed, on one occasion I was told their system was down and he would call back in 10 minutes when it was back up. 30 minutes later I called and was told the office had closed for the day.

 

Eventually I spoke to someone, and they sent out the details for the account. We filled out the details and sent it back.

 

Yesterday, over 2 months since our initial application we get a letter saying that the business account cannot be opened until they see 3 months bank statements from both directors. First, I bank with them so surely they can access this?? Secondly, we sent them along with our initial application!!

 

During this farce, we also applied to Natwest with exactly the same criteria. The day I made the application my local bank manager called to arrange an appointment. Within 10 days, the business account was opened, the £15K loan was agreed, the cheque books had arrived and we are up and running. I also have a guy who I can call any time. There is no ridiculous £80 here and £100 there charges at all.

 

My recommendation, avoid HSBC for start-up businesses. Natwest on the other hand have been a pleasure to deal with.

[indizine 10]

I had a very similar experience with a merchant account; what a faff and a mare to deal with. Wouldn't go there again that's for sure.

[richard 10]

I got a HSBC banking account by visiting a branch and had no problems. Though I didn't want a loan, so maybe that's why my experience was so different.

[Lurch 10]

HSBC aren't all that business orientated IME. Straight forward accounts they can do, anything slightly out of the ordinary and it all goes pear shaped. I had similar experiences with Lloyds, Barclays on the other hand are much easier to deal with and actually have people employed in branches to do more than just serve at the counter.

[just_words 10]

Not that this is directly related, but it does concern HSBC, Barclays, etc:

http://www.theregister.co.uk/2009/06/01/website_bug_plague/