Why might your business account be frozen?

2 years ago   •   5 min read

By Laine Redpath

If you’re a business owner, then chances are that you have a business account. This is where your money is kept and where your employees can transfer funds in and out of the company. However, it's also the primary place where things can go wrong with your business. Here are some reasons why your account may have been frozen:

A regular check-up can prevent things from going wrong.

It's important to have regular check-ups. Your business account is like a car, and regular maintenance keeps it running smoothly and efficiently. Just like you wouldn't drive your car for several years without taking it in for its oil changes and tune-ups, you shouldn't let your business account go without attention either. Think of this as an opportunity to regularly check-in on your accounts, so that if something needs fixing or updating at any point, you can make the necessary adjustments now instead of later on when things become more complicated. The most important aspect of doing regular checks is making sure that everything works properly—keeping yourself informed about everything that’s happening with your account; knowing right away if there are any errors or issues coming up; being able to fix those problems before they become bigger ones; etcetera!

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If you've moved to a new address, tell your financial services provider

If your business account is frozen, it's likely because:

  • You've moved to a new address and haven't updated the provider. These institutions don't like having incorrect information in their database, so if they think that you've moved from one location to another without telling them, they will freeze your account. Make sure that you provide all of the necessary contact information with every application form when opening an account or updating any financial service details—and remember to update this information every time there is a change in your situation (even if it involves nothing more than relocating!).
  • Someone has used your personal identification number (PIN) or password without permission. If someone gets access to either of these pieces of information, they could use them as part of an illegal activity such as stealing money out of people's accounts or making fraudulent charges on existing credit lines. If anyone knows what either of these things are (or can guess), then change both immediately!

Keep an eye on your activity.

  • Keep an eye on your activity. It's important to regularly check your account activity and review transactions, especially if you're experiencing a high volume of business. If you don't see transactions that you expected, contact the provider immediately.
  • Know who has access to your accounts. Make sure everyone who has access to your accounts is authorised by you or someone else in charge of finances. Don't let anyone else use them without authorization from the person responsible for finances at the company or organisation it belongs to!

Make sure the person authorising transactions has not left the company.

The first thing to do is make sure the person who's authorised to make transactions hasn't left the company. If you don't have a designated person for this, add one now. The second thing to check is who has access to the account and how they're able to manage it. If you don't have any restrictions set up on your account and someone doesn't require two-step verification, that could be why your funds were frozen.

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Keep an eye on the name of your business.

Your business name is important. It's the first thing people see when they search for your company online, so it's critical that you get it right. The best practice is to create a unique name that doesn't sound too generic or similar to other businesses' names. For example, if another company in your industry has a very similar name and SEO strategy as yours, make sure you have a differentiating factor like an acronym or a different spelling (for example: "Coco & Co." instead of "CoCo").

Someone may be attempting to steal or use your identity.

The first thing you need to do is check your credit score and report. If your identity has been stolen, it can happen a lot faster than you think. To protect yourself, make sure that no one is impersonating you or stealing your identity for fraudulent purposes.

To do this, go through the following steps:

  • Get access to your credit report from all three major agencies (Equifax, Experian and TransUnion). Once again, this will not affect any of your existing accounts but only give access to their records about them.
  • If there are any suspicious accounts showing up on these reports (such as an account opened in another person's name), contact the branch or the platform immediately with any details regarding how they were opened or what they were used for.

It's important to keep track of how your business account is being used and how things are working for you with the platform where it's held.

  • If something doesn't seem right, contact your financial service provider as soon as possible.
  • You should also make sure that the person authorising transactions has not left the company or lost their authority to act on behalf of your organisation.

We hope that this article has helped you understand the reasons why your business account may have been frozen. Keep in mind that it's important to keep track of how your business account is being used and how things are working for you with the provider where it's held. If anything seems off or wrong, contact them immediately.

Open a business account with wamo!

Tired of having your accounts frozen for no reason? If you are currently experiencing frustration with having your business accounts frozen for no good reason, take a look at wamo. Unlike traditional institutions, wamo provides a business account designed for businesses. It aims to prevent businesses from wasting time by streamlining processes and cutting out any  unnecessary paperwork.

Whatever the size of your business, you can open a business account with wamo in just 10 minutes and start managing all your finances in one place. wamo can be more flexible and adaptable to your business needs because it’s different than traditional institutions. It has additional features specially designed to meet the needs of businesses quickly. You can also get instant debit cards, virtual cards, multi-currency accounts and payment codes. wamo is available to download wamo from the App Store or Google Play.


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