Bank manager woes

Wrenchie Registered Posts: 33 Regular contributor ⭐
Hi all, was really hoping someone could give me some advice.

I have a partnership client who t/o approx £300,000 a year. Their books are not kept very which is something I am desperately trying to rectify.

Up to June this year the last set of accounts completed was to 30 April 2008. They then decided that they needed a loan asap, could I do the accounts to 30 April 2009 and 2010 very quickly. They had made an appointment with their bank manager at very short notice and the best thing I could do given the state of the books is to prepare some very draft accounts with supporting notes to try and give the bank manager as good a picture as I could. The client was very happy with this.

The bank manager turned them down for a loan and also told them that the accounts were very badly drawn up and they should get rid of me. He suggested an accountant they could use. So they got this new accountant in who said that my accounts were fine, nothing wrong with them, the bank manager doesn't know what he is talking about. So client says she wants to retain me and so it continues! I manager to finalise the accounts and duely e-mail a copy to the bank manager as requested by client. I also include the covering letter per the AAT's templates regarding loans and mortgages.

The bank manager replies saying they are very sorry they can't give a loan due to a negative balance sheet, which I completely understand. However he also adds:

"Furthermore, the accounts which were provided by your accountant also came with a covering letter, the type of which I have not seen often before - effectively a disclaimer dis-avowing herself from any liability should a mortgage lender use the accounts on which to base their decision. Whilst this is clearly her prerogative, it has raised the question why she should feel the need to point this out to a Bank?"

I interpret this as he is telling my client that I have advised him not to give them a loan.

Sorry this is so long winded, thanks for keeping with me! Can anyone offer me any advice as to course of action?!

Many thanks


  • Guest
    Guest Registered Posts: 73 Regular contributor ⭐
    Interesting sounds like the bank manager has the problem.

    Personally I would ring the manager and invite him around to the office to discuss what issues he had with the accounts prepared taking into account they were quick drafts. I would also wish for an explanation of the letter sent to the client re the disclaimer, think any accountant worth their salt would normally have this in. Get a copy of this.

    I guess the above depends on how confident you are within yourself, but I’d have no hesitation if the manager continues to have such issues to introduce the client to another bank (reverse the problem).
  • wildgoose1uk
    wildgoose1uk Registered Posts: 200 Dedicated contributor 🦉
    I may be wrong but I tink there may be more mileage in explaining ot thew client that it is purely a set letter as recommended by AAT and showing the paperwork to back that up. if they need more convincing then member services may be able to help.

    I seriously doubt the bank manager would take the time to get involved with you personally as there is no relationship there. As to whether you should recommend to your client that he change to another bank that is another ballgame completely and given that your clients already seem to be in a bit of a pickle not a route that I would take lightly.
  • bumblebee
    bumblebee Registered Posts: 135 Dedicated contributor 🦉
    I think the bank manager seems like is on commission from the accountants he referred to.
  • Wrenchie
    Wrenchie Registered Posts: 33 Regular contributor ⭐
    Thanks very much for your comments! Fortunately the client is on my side and has had a number of problems with the bank manager in the past, so I think will be changing without any pressure from me!
  • LucyJ
    LucyJ Registered Posts: 72 Regular contributor ⭐
    bumblebee wrote: »
    I think the bank manager seems like is on commission from the accountants he referred to.
    I completely agree Bumblebee.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    I would not leave the matter. I would contact the manager for a meeting and if he could not explain himself satisfactorily, I would request a meeting with one of his superiors. If you go this way, take loads of notes and quotes with you just in case you get tongue-tied at the meeting. And this sounds like a Barclays manager.
  • Wrenchie
    Wrenchie Registered Posts: 33 Regular contributor ⭐
    TC it is interesting you say that, it is indeed a Barclays manager! How did you guess, spill the beans!! And I though NatWest were the worst!
  • bumblebee
    bumblebee Registered Posts: 135 Dedicated contributor 🦉
    Came accross a leaflet from Barclays, this was for starting new business and advice provided etc etc, in that it mentioned 45 mins with local accountant (and it made me wonder too!)
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