Business Overdrafts
Be financially flexible with a business overdraft.
If you’ve lost someone in your business or who operated a business account, we’re here to help make the process of sorting out the finances as simple and straightforward as possible. Should the worst happen you can rely on us to give you guidance and support when you need it most.
We’ll answer any questions you may have, explain the next steps you need to take and guide you through the process of how best to deal with the business accounts.
1. Will the account be suspended?
If the holder of a Sole Trader account has passed away, the account will be suspended.
Accounts for a Limited Company with multiple directors will remain operational unless we are advised otherwise by the representative, or if we need to reassess our security over any debt owed to us by the company.
All other account types will be assessed on an individual basis. The Relationship Manager or a member of our team will work with you to understand the next steps.
2. What will happen to direct debits and standing orders?
If the holder of a Sole Trader account has passed away, all direct debits and standing orders will be stopped.
For accounts connected to a Limited Company with multiple directors, the payments will continue while the account remains active, unless we are advised otherwise by the representative or if we need to reassess our security over any debt owed to us by the company.
All other account types will be assessed on an individual basis. The Relationship Manager or a member of our team will work with you to understand the next steps.
3. What do I need to do if the business has existing lending?
We’ll work with you to deal with any outstanding lending and explain all possible options.
4. What happens to the credit/charge cards on the account?
Any outstanding balance on Sole Trader or Limited Company Sole Director accounts will need to be repaid by the available funds in the business account or the estate. However, if there are no funds available within the accounts or estate we’ll work with you to resolve the matter.
For Limited Companies with multiple directors or Limited Liability Partnerships, any credit/charge cards on the account in the name of the deceased would need to be cancelled. If there are multiple card holders in the name of the company, then the facility should continue. The Relationship Manager assigned to your case or a member of our team will be able to give you all the information you need.
All other account types will be assessed on an individual basis.
5. What does the term ‘certify’ mean?
When a document is certified it is officially confirmed as being genuine or a true copy. Documents are usually certified by a solicitor or notary public. If you take the original document(s) into branch, a member of staff will be happy to make a copy and certify it for internal use within Lloyds Banking Group.
6. Do I need to worry about Inheritance tax?
Depending on the size of the estate and who the beneficiaries are there may be a liability to pay Inheritance Tax.
You can contact your local tax office directly or visit the HMRC website.
7. What if there is a Will?
If the person who has died leaves a Will, the person(s) named as Executors act as representatives of the person who has died. The Executors take legal responsibility for carrying out the instructions in the Will, and dealing with the money and property, known as the estate.
If the Bank is appointed Executor please contact the Bank’s Estate Administration Support Team on 0800 056 0171.
Where the Bank is the Executor under the Will there is no need to speak to anyone else.
8. What if there isn’t a Will?
If the person who has died has not left a Will this is called ‘intestate’. The law sets out who should inherit the estate. You may need to apply for authority to be the administrator of the estate. The administrators will act as personal representatives of the person who has died and take legal responsibility of the estate. If unsure, please seek legal advice.
9. I need help with administering the Estate
The Bank’s Estate Administration Support Team will be able to offer support and guidance regarding the administration of the Estate. This includes applying for Grant of Probate, administering the Estate when the Executors cannot act or if there is no Will in place. For further advice, please contact the team on 0800 056 0171. Alternatively, you can find out more information by watching our Estate Administration Service video.
Fraud awareness
If you have any concerns about fraud or want to find out more about steps you can take to stay secure online, please see our Online Security advice.
Additional support available to you
If you have any questions that aren’t already covered in this list of Frequently Asked Questions and you know the number of the Relationship Manager for the business account, please contact them directly.
Alternatively, you can contact us on 0345 835 5420. Lines are open Monday to Friday, 9am to 5pm.
If you are calling from abroad, you can contact us on +44 173 3347338.
External support available to you
For further support and guidance, there are several external organisations that will be able to support you during this difficult time. A list of these companies can be found within the Financial Services after a Bereavement guide (PDF, 2.8MB).
We realise how difficult a time this can be, so we’ll be available to offer support when you need it. Our guide below explains how we can help:
Sole Traders
Sole Trader accounts are referred to our Specialist Bereavement Support Unit who will liaise directly with you while they are handling the case.
Any Sole Trader accounts, where the account holder has passed away, will be suspended.
Limited Company Sole Director
Limited Company Sole Director accounts will be assessed on an individual basis. The Relationship Manager or a member of our team will work with you to understand the requirements and operation of the accounts in the future.
Limited Company with multiple directors
If the Limited Company has multiple full power signatories, the Relationship Manager or a member of our team will work with you to help you understand the requirements and operation of the accounts going forward.
Clubs, Charities and Societies (CC&S) and Trusts
If there are multiple full power signatories, the Relationship Manager or a member of our team will arrange for the relevant documentation to be sent to you to update the signatory details on the account(s).
Limited Liability Partnerships (LLPs)
In the case of Limited Liability Partnerships, the Relationship Manager or a member of our team will help you understand the requirements and operation of the accounts going forward.
Partnerships
In the case of Partnerships, the Relationship Manager or a member of our team will work with you to understand the requirements and operation of the accounts going forward.
If you have the telephone number of the Relationship Manager for the business account, please contact them directly.
Alternatively, you can contact us on 0345 835 5420. Lines are open Monday to Friday, 9am to 5pm.
If you are calling from abroad please call us on +44 173 3347338.
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While all reasonable care has been taken to ensure that the information provided is correct, no liability is accepted by Lloyds Bank for any loss or damage caused to any person relying on any statement or omission. This is for information only and should not be relied upon as offering advice for any set of circumstances. Specific advice should always be sought in each instance. Lloyds Banking Group includes companies using brands including Lloyds Bank, Halifax and Bank of Scotland and their associated companies. More information on Lloyds Banking Group can be found at lloydsbankinggroup.com.