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After consideration I will start writing about my experiences as small business owner: the hurdles, the struggles, the joy and everything between. Due the fact I would like to publish a book later, I will write in English. The reasons for that: first the audience is much bigger for English and second I cannot express my thoughts in German anymore when it comes to business. I apologise to my German readers.

Let’s start. First episode of Small Business Talk – Big Banks and Small Businesses

Yesterday I’ve received a statement from a bank we had applied for a merchant device. Despite giving the bank almost every financial detail about the company and directors, without providing those information the banks will not even look at you, the bank declined the application without any reasons. They never do, you just not fit their bill. Ok, fine I thought. Next. Already the decline was a long-winded process. Despite applying online, the bank sent a letter four weeks after the application that it declined our request of a merchant. No email, nothing. Of course I’ve investigated after 3 weeks, just to get informed that it has been declined. Nice, 3 weeks wasted and time lost to apply with a different bank. It wasn’t that we needed one for the opening of our second store. That itself is already a farce.

To get a merchant the banks require you to open a standard bank account. Despite never signed up for one and the decline of the merchant the bank had the guts to send the paperwork to sign to open one. For a Pty Ltd it means all directors have to sign and you need to drop the pants for the application, again. The paperwork went straight into the bin. How can the bank expect to sign you up after it declined your business in the first place? The binning act should have closed the case. No paperwork, nothing signed, no bank account.

Wrong. As mentioned at the start the bank sent a statement for a bank account the company never signed to open in the first place with a debit amount. And of course there is a 20% interest on debit amounts. Seriously? Again, it took action of the director with 15 minutes on the phone to rectify the situation. If you don’t rectify the situation straight away it gets worse, you may even get a bad credit rating if you do nothing. A big banks do the wrong thing and a small business needs to sort it out. Not sure how the big banks get away with it.

The whole case consumed 3 hours of the time of a director. Considering resources for a small business are limited and really tight, this isn’t helping. Sometimes you wish you could just invoice them.

Cover Photo by Christian Joudrey on Unsplash

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