Banking UK LTD Startup Difficulties and Shock

[Martin Everson]

I just got accepted for cardonemoney Business account.

Never heard of them to be honest. Maybe a good find

Do they accept MENA business...I mean are they aware of MENA transactions coming or they never asked...lol?

 

[Sols]

Cardonemoney is a Payment Institution, which means they are using another bank to provide the banking services (they list Barclays and NatWest on their website). There's a big risk you will be fine for a while until a transaction comes or goes out that looks suspicious and then the bank will force Cardonemoney to terminate your account.

 

[soly20]

Never heard of them to be honest. Maybe a good find

Do they accept MENA business...I mean are they aware of MENA transactions coming or they never asked...lol?

Yea, I mentioned UAE on the phone when they asked me about the countries for incoming and outgoing transfers. I asked if there are any limitations on the countries for transfers and they said no, only limits are sanctioned countries (Iran, North Korea..)

 

[soly20]

Cardonemoney is a Payment Institution, which means they are using another bank to provide the banking services (they list Barclays and NatWest on their website). There's a big risk you will be fine for a while until a transaction comes or goes out that looks suspicious and then the bank will force Cardonemoney to terminate your account.

What would constitute a suspicious transaction? If it is a payment against an invoice with shipping documents, both available to be presented, to a non sanctioned country, what would be the problem?

 

[Sols]

What would constitute a suspicious transaction? If it is a payment against an invoice with shipping documents, both available to be presented, to a non sanctioned country, what would be the problem?

Well, seeing as you have been rejected by both Barclays and NatWest already, there risk is that they will find anything related to your business suspicious. A large transfer from China, Lebanon, or MENA which upon closer inspection is related to medical equipment for a company owned by a Lebanese passport holder. You're back at square one at that point.

I don't mean to be a downer, but — right or wrong — most banks have taken the stance that anything related to MENA is risky. You put a lot of eggs in a rather weak basket if you rely on something that in turn relies on banks that have already declined you. It's not only up to Cardonemoney. They need Barclays and NatWest to be happy as well.

 

[soly20]

Well, seeing as you have been rejected by both Barclays and NatWest already, there risk is that they will find anything related to your business suspicious. A large transfer from China, Lebanon, or MENA which upon closer inspection is related to medical equipment for a company owned by a Lebanese passport holder. You're back at square one at that point.

I don't mean to be a downer, but — right or wrong — most banks have taken the stance that anything related to MENA is risky. You put a lot of eggs in a rather weak basket if you rely on something that in turn relies on banks that have already declined you. It's not only up to Cardonemoney. They need Barclays and NatWest to be happy as well.

True. I have open applications with transferwise and 3S.money. Waiting on them first before i go to a MENA Bank.
Do transferwise and 3S.money use Barclays and Natwest

 

[Sols]

TransferWise have their own EUR and GBP clearing. For USD, they work with a few different banks. But their AUP specifically forbids certain health care products. Whether that affects you depends on whether your products fall under those categories.

Your business is too risky to rely on any single point of failure. Have EMIs if you can, but I wouldn't sleep well at night without at least one proper bank account.

 

[soly20]

TransferWise have their own EUR and GBP clearing. For USD, they work with a few different banks. But their AUP specifically forbids certain health care products. Whether that affects you depends on whether your products fall under those categories.

Your business is too risky to rely on any single point of failure. Have EMIs if you can, but I wouldn't sleep well at night without at least one proper bank account.

It is true, what you said about TransferWise. They don't allow pharmaceutical sales, which is not us. They asked and I answered that we do not.
I am trying, as you suggested above to start with EMIs and then I will go to one of the MENA banks in UK (after covid restrictions ease), cause I need to physically go to the bank and meet them personally.