UK Need Advice Regarding Proposed Temporary Banking Solution

[Prufrock01]

I'm the Director of a UK Limited Company that has been trading for 10 years, and am the company's sole employee. For the last three years, however, I have had to step out of working, and the company has basically been dormant, with no income. During that period, company expenses were funded through a series of personal loans, and the company held one large asset (a house).

I am now ready to begin working again. We've sold the house. And the company currently has no current account. The solicitor for the sale is currently holding the proceeds in his client account. The company has received a first strike-off notice from Companies House, and I am quickly trying to get our affairs in order to avoid further problems (i.e., striking off, insolvency, barriers to re-establishing clients and work). As part of that process, I need to establish a new business banking relationship, and access the proceeds from the sale of the house.

The challenges:

• Finding a bank willing to take us on under such conditions is not easy.
• It looks like Barclays is willing to give us a shot, especially if they see we have worked to set the company straight with Companies House.
• Getting us through that requirement, along with meeting current obligations, will require working capital - that we don't have access to.
• Personal savings (the prior route to funding cash shortfalls) has run out.
• It is inappropriate to use our solicitor's client account as a proxy for a company current account - even on a temporary basis.
• The prospective time frame for getting a current account up and running is reasonably estimated to be 3-4 weeks.

It seems like an intractable feedback loop, where we need banking to bring our accounts current, but we need to bring our accounts current to get banking.

I have an idea that might work on a very short-term basis. Basically:

1. I open a personal savings account at a bank I have no personal relationship with (in this case Barclays).
2. Instruct solicitor to transfer proceeds from sale to the new savings account.
3. Any activity out of that account would only be to a director, and in the form of petty cash advances; petty cash reimbursements or; Director's Loan
4. I record all activity in competing dual journal entries as both individual trasactions, and DLA entries.
5. Bring all business and Companies House accounts to current.
6. Secure the new current account and transfer remaining funds.
7. The accountants can decide if they want to simply adopt it into the regular accounts, or treat it all as one big net DLA entry.
8. Make it all fast.

I think this might work. The company would be seen as the beneficial owner of the account. The only thing currently due Companies House is prior years accounts, so they wouldn't even see it unless there is some reason to investigate. The gap between the total funds (~£425k) and immediate obligations (less than ~£50k) is big - lower than the inverse DLA balance by far, so very little risk of jeopardizing the limited liability aspect.

Any ideas on if it would/could work? Or any alternative ideas? I'm open and appreciative of any advice you guys might have.

Thanks, and all the best.