Starting a Limited company: Will having a bad credt rating be a problem?

[pault107]

I'm new to contracting and have already completed a few small jobs and more are on the horizon. I'm looking to set up a Limited company but I'm worried that my credit rating is very poor.

Will this affect my ability to open a business bank account? Any other issues I should be worried about?

Thanks in advance.

[pmeswani]

I'm new to contracting and have already completed a few small jobs and more are on the horizon. I'm looking to set up a Limited company but I'm worried that my credit rating is very poor.

Will this affect my ability to open a business bank account? Any other issues I should be worried about?

Thanks in advance.

Assuming that you are not kidding here... yes it will. Setting up a Business Bank Account whilst having a bad credit rating shows that you are open to money laundering and other financial threats. Especially if you have CCJ's against you. You may want to look at using an Umbrella until your Credit Score improves.

[Paddy]

Assuming that you are not kidding here... yes it will. Setting up a Business Bank Account whilst having a bad credit rating shows that you are open to money laundering and other financial threats. Especially if you have CCJ's against you. You may want to look at using an Umbrella until your Credit Score improves.

There is much confusion with some people concerning the difference between Individuals and Limited Companies. I you are worried as an individual about your credit rating then the best way to deal with it is to appoint you mum, dad, GF etc as director and another person as company secretary. As long as you have the majority of shares (51% to 99%) you still own the company and get paid dividends. Once the bank account is opened, wait a few months and add yourself as a director. If you with you can resign the other directors. Job done, you have a company with a bank account. I suggest buy a good book on how to run companies and company law. It will save you a load of hassle.

[Jubber]

Assuming that you are not kidding here... yes it will. Setting up a Business Bank Account whilst having a bad credit rating shows that you are open to money laundering and other financial threats. Especially if you have CCJ's against you.

What utter twaddle - your answer implies that a bad credit rating means you are more likely to be become a criminal or fraudster. Rubbish.

I suggest you (OP) go to the bank and make an appointment to see a business manager. Explain your history and explain what type of account you require. If you are straight with them there shouldn't be a problem. Don't expect them to shower you with debit and credit cards at the beginning - that will take time

[bullseye]

I suggest you (OP) go to the bank and make an appointment to see a business manager. Explain your history and explain what type of account you require. If you are straight with them there shouldn't be a problem. Don't expect them to shower you with debit and credit cards at the beginning - that will take time

WHS + start from the bank where you already have your personal account.

I had some defaults from my student days and had the same concerns as yourself. Went into my bank, spoke to them, explained to them and managed to open the account. (Even if you dont tell them about your credit profile, they will get to know anyway from the credit agencies).

I was told I wont get any credit cards for the first year. But was called from the bank after 9 months and asked to collect the credit card for the company, with liberal credit.

[VectraMan]

What utter twaddle - your answer implies that a bad credit rating means you are more likely to be become a criminal or fraudster. Rubbish.

It does prove you have a history of irresposible financial decisions.

Plan B Co still doesn't have a debit card after a year as they said they'd have to see regular money going in before they'd give us one. And neither me or my fellow director have any credit problems.

[pault107]

Thanks for your advice guys - I will make an appointment with my bank.

[Mich the Tester]

I can’t imagine how your credit rating can be even worse than the average bank’s credit rating.