How to close a business account?

Published on : 28 June 20213 min reading time

Every business must have at least one business bank account. At some point, the business may decide to close this account for a reason of its own. It is important to know that the closure of this account can be initiated by the bank that holds the account or by the company itself. In any case, the procedures to be followed when closing a business account are neither mandatory nor binding, as they are carried out with one or more valid reasons. However, the realization requires great attention in order not to forget a single detail and a single step of the procedure.

Closing a business account: in what case?

If the company is not facing an exceptional situation, such as liquidation or tax adjustment, the bank or this client company can take the initiative to close its bank account. In case the bank decides to close a business account, it must first give the customer a moment to open a business account in another bank. There are many reasons why a business might close a bank account. It may be that the bank holding the account is no longer able to support the business; it may also be due to a new offer from another bank. Alternatively, it may be due to a dissatisfaction or a dispute that the company or the bank did not like. It is good to know that whatever the reason for the closure is, the bank or the company is not obliged to specify it. Know that you have the possibility to close a business bank account. Overview on Business Account!

Points to take into account for the closure

When the closing procedure begins, the client company must leave nothing to chance, which means that it must be sure that it has settled all its debts to the bank if there were any. It must be ensured that all bank transactions, such as direct debits and transfers, are completed. It must also return all payment instruments to the bank. The most important thing to remember before closing is to find a new bank to open a new business account.

The steps to follow

First of all, it is always necessary to make a request to the bank to close a business account. This request must be accompanied by the following supporting documents: a handwritten letter of closure, signed by the head of the company as well as a copy of the proof of existence of the client company. These documents must be taken into account, because without them, the closure request will not be successful.

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