Good Afternoon,
I am sending this message from my account as I can no longer access the community forum from the company account. The account has been limited, and all funds have been frozen for 180 days.
Here is some background to my story- I have been running my business for 19 years and have managed things with a small team. Things have been fine up end of 2021.
However, last year brought about significant setbacks due to various factors such as container freight costs, fuel costs, interest rates, and the rising cost of living. These challenges impacted our customers and all individuals associated with the business.
We faced difficulties reaching our projected figures and experienced cash flow issues, so we approached HSBC for assistance(October 2022). They advised us to speak to a Business Turnaround Specialist. Following their advice, I met with a panel IP from HSBC, who suggested that voluntary liquidation was the only viable option. Despite explaining that our suppliers were content with our payment arrangements, the option of a Company Voluntary Arrangement (CVA) was presented with a requirement of £25K, which we did not have. Instead, we were asked to arrange £9,000 for the liquidation process, which we reluctantly did.
We purchased the website, IP rights, and digital rights during the liquidation process. Additionally, we bought the forklift from the liquidators. The liquidators sold £300K worth of stock for just £50K, and they took access to all our bank accounts, including PayPal. At that time, PayPal held almost £60K, which was paid to the liquidators.
Subsequently, we established a new company with the assistance of the liquidator and accountant. We informed all relevant agencies about the new company and opened new accounts with banks, Klarna, other finance partners, and, of course, PayPal.
The difficulties escalated when we asked to change the name on the PayPal account. We followed and let our bank and other institutes know what to do. However, PayPal stated that we couldn't change the name and had to open a new account using the new company name. Unfortunately, we had already received over £30K worth of orders, and that money was now on hold. Despite opening the new account, our funds remained inaccessible as the performance was suddenly limited.
We then tried to sell using the new account, but it was also limited within a week, despite providing all necessary documents, proofs, and invoices. Consequently, we ended up with two limited accounts. During this time, I spoke with a helpful PayPal representative who understood that a mistake had been made internally due to the name change and raised a ticket to resolve the issue. Thankfully, the money was released the next day.
However, the problems persisted, and the second company’s PayPal account was eventually limited. As a result, we started losing orders as we couldn't accept PayPal payments. I had no choice but to use my personal account, which was also subjected to limitations, requiring more information, invoices, proofs of delivery, and goods.
Finally, I received an email stating that my account has been limited and that I can no longer use PayPal.
Despite my efforts to rebuild after such a challenging time, PayPal seems to have no interest in me or my business. The stress and strain of all this have taken a toll on me, but I remain committed to doing the right thing for my family, team, and myself.
Thank you all for taking the time to listen to my story.
Best Wishes,
tfman
