Hi

A record number of businesses have had their bank accounts frozen or closed in recent weeks without explantion. The vast majority of these are relatively small owner-managed businesses.

Barclays, NatWest and HSBC have all closed hundreds of customers' business accounts, usually without telling their owners why, leaving many without access to their funds and the ability to transact business.

Despite being asked, banks rarely give a explanation of the reason for the clousure, and have no obligation to do so. They claim that they always write to customers to give them notice that their account will be closed giving them time to open an account with another bank, although this is clearly not the case. Recent postal strikes have also been blamed for letters being lost or not delivered.

The small print that customers sign up to when they open an account gives banks the right to close accounts without warning which they won't hesitate to do if they decide it's necessary to protect themselves.

For the past two years I have being advising my clients to have business bank accounts with at least two separate banks, preferably one high street bank and one online bank. The additional cost is minimal and well worth the insurance against finding yourself without having a banking service.

Noel Guilford