Banking Issue: Is this normal?
 

Is this normal

A bank holds our funds because we stop processing for 2-4 days.
We ship real products (high cost) and were behind about 5 days on orders so we figured we would stop and get caught up on funds (the bank pays 2 weeks behind). They contact us and tell us they are holding funds and in order to get our funds we need to be activly sending them orders. We explain the issue and still they do not release the money until we are sending orders again.
They also waiting about 5 days into the orders to release any funds.

But the question was is it normal for them to hold funds like that? To me it seams crazy and not only hurts us but them.

so basically you didnt send any signups for 4 days and they stopped paying ? thats not a bank its more likely a processor... and no thats not normal imho

Yes, it was a processor. Not the bank.

I thought it was crazy. Specialy when we have products to ship.

Of course it's normal. Otherwise they will be exposed to great risks should there be charge backs later on. They want to use the constant cash flow as collateral in case of any problems (so they can hold funds at any time in the future).