With plenty of banking alternatives available, people and businesses have switched banking partners.
For this, one must close the previous business bank account and open a new one in the chosen organization.
Closing a business bank account might sometimes be stressful if it is not handled with care.
Closing a company bank account doesn’t have to be difficult. Following the correct procedures may make the process easy and hassle-free.
In this blog, we will discuss the steps and procedures to close a business bank account.
If you are ready for it, you can effectively shut down your account and emphasize the business’s future steps.
If you’re among the people looking for information on how to close a business bank account for any other reason, read on to find out what you need to know.
How To Close a Business Bank Account: 5 Steps
Clear Outstanding Transactions
Before closing your account, complete all pending checks and transfers. Cancel any recurring payments like direct debits and make sure there are no unfinished outgoing payments to avoid issues with vendors or clients.
Gather Required Documents
You’ll need specific documents to close your business account, including:
- Proof of your business name and address
- Details of your business registration or partnership, such as the formation date and structure
- Your account information
- A formal closure request letter with instructions for transferring any remaining funds
- Confirmation of authorized individuals who can manage the account closure
Submit a Formal Closure Request
Send a letter to your bank asking for the account to be closed, signed by all those with the authority to manage the company’s finances.
Check your business documents to confirm who needs to sign. To finish the procedure, certain banks might need an in-person visit.
Set Up a New Account and Transfer Funds
If your business is still active, open a new account for managing payments. After clearing any pending transactions, transfer the remaining funds to the new account.
Notify clients, vendors, and others about the new account details to ensure smooth operations.
Read about: Best Neobank for Business Transactions in 2025.
Verify Your Business Account is Closed
After initiating the closure, confirm that your account has been fully closed to prevent any unexpected charges or missed payments. Ensure all required documents are signed and any closure fees are fully paid.
Review the final account statement carefully to check for any unapproved transactions. If you see any problems, get in touch with your bank ASAP to fix them.
Download and save all relevant documents and statements for your records, as you won’t be able to access them once the account is officially closed.
Read about: Best Business Bank Account in India for SMEs
How To Close a Business Bank Account: Examples
You should adhere to the specific procedure that each bank provides for terminating business accounts. The three most popular suppliers of business accounts are Lloyds, Citibank, and Bank of America. We offer some instructions on how to terminate a business account with each of them below.
How To Close a Business Bank Account – Bank of America
Here’s a brief overview of how to close a Bank of America small business account:
- Update Your Information: Check your online profile to ensure your mailing and email addresses are current.
- Clear Any Negative Balance: Pay off any outstanding negative balance or contact the bank to set up a repayment plan.
- Disable Account Features: Turn off any special features linked to the account.
- Merchant or Remote Deposit Services: If you have a merchant account or Remote Deposit Online (RDO) connected to the account, reach out to the Merchant Services team or RDO Help Desk before proceeding.
Note: You can’t close the account online. To close it, you can:
- Schedule an appointment and visit a branch in person.
- Call customer service to request the phone.
- Send a written request via mail. The letter should include your business name, address, account number, and signatures of all authorized users.
If there’s still money in the account, specify whether the balance should be transferred to another Bank of America account or sent to you as a cashier’s check. For balances over $25,000, the letter must be notarized.
Read about: The Best Way to Transfer Large Sums of Money Abroad
How To Close a Business Bank Account With Citibank
Here’s how to close a business bank account with Citibank:
- Contact Citibank: Reach out to your account manager or Documentation Specialist to discuss the process and request an account closure form.
- Complete the Form: Fill out all required sections of the form.
- Zero Out the Balance: Transfer any remaining funds through Citi Direct to bring the account balance to zero. If you want Citibank to handle this, you must complete Section 2 of the closure form.
- Update Authorization Information: Make sure Citibank has the latest Global Manual Transaction Authorization Form (GMTA) with accurate contact details.
- Submit the Form: Send the completed account closure form to the address provided by your Documentation Specialist.
Citibank will review the form to confirm that the listed signatories are authorized to close the account.
Read about: Top Neo banks In India. Everything You Need To Know In 2025.
How To Close a Business Bank Account at Lloyds
You can email or submit a completed account closure form to Lloyds if you need to know how to shut down a business bank account.
To be informed by text or email when Lloyds receives the full form and when the account is closed, you should fill out Section 3 of the form with your contact information.
After the account is closed, you will still get a closing statement by mail even if you choose not to sign up for the notification service.
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Key Factors To Consider When Closing a Business Bank Account
Closing a business bank account requires careful planning to avoid any issues. Here are key things to keep in mind:
Review Account Agreements:
Check the terms and conditions of your business account. Some banks may require advance notice or the payment of outstanding fees before you can close the account.
Keep Documentation:
Save copies of all documents and communications related to closing the account. These records are essential for your business’s financial records, accounting, and potential audits.
Handle Linked Services:
If your account is connected to other services like merchant accounts, loans, or credit lines, ensure these are closed or transferred before closing the account.
Check Overdraft Terms:
If the account has an overdraft, review the terms to see if it can be transferred or needs to be repaid in full first.
Understand New Account Terms:
Before closing your old account, review the terms and conditions of your new account carefully. Clarify any concerns with the new provider to ensure it meets your needs.
Avoid Dormant Accounts:
If you have an account, you no longer use, close it before it becomes inactive (after 12 months with no transactions) or dormant (after 24 months).
Dormant accounts may be closed by the bank, and any funds could be turned over to the state. Recovering those funds later can be a hassle.
Inactive accounts also pose security risks, as they are less likely to be monitored and could be targeted by fraudsters. Closing these accounts eliminates that risk and avoids potential inactivity fees.
Choose the Right Account:
When selecting a new account, choose one that fits your business needs. Compare features, fees, and accessibility to ensure the account supports your plans.
Read about: All About Overseas Payments (2025); Comprehensive Guide
Looking for a New Business Bank Account? Take a Look at Walcy.
If your present provider does not fulfill your requirements and you want to change your business bank account, try Walcy.
Walcy is not a bank, but it is a fintech company that offers banking-like services. It is the perfect alternative to traditional banks for people looking for a modern banking experience.
Walcy’s business account has a variety of tools that make it simple to handle your company’s money, particularly when sending and receiving payments internationally.
You can receive and send funds in multiple currencies with local account details worldwide.
It offers the best FX rates based on the mid-market rate. Moreover, you can make it easy to manage your business’s finances, especially when sending and receiving payments overseas.
You can receive and send funds in multiple currencies with local account details around the world.
Read about: Major Types of Cross-Border Payments in 2025; Detailed Guide
Conclusion
In conclusion, closing a business bank account doesn’t have to be a complex process if approached systematically.
To guarantee a seamless transfer, clear pending transactions, gather essential documentation, and follow the right procedures.
Remember to plan carefully, keep records, and notify all relevant parties to avoid disruptions to your business. If you are considering switching to a modern and efficient banking solution, explore Walcy’s offerings.
With its user-friendly services and global payment capabilities, Walcy is designed to support businesses like yours. Make the move today and experience the difference.
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