Business bank account for someone with poor credit history and/or CCJ's?

[Vurso]

Hi,

As per the title I have the dilemma of trying to set up a business bank account for my limited company but I have some very bad credit history (due to fraud by a business partner in the past) and an active CCJ (defaulted on a mortgage).

Long story short I want to set up a business bank account and I was advised by several sources to try banks like Metro Bank (refused), Natwest/RBS (pending application but they want details on the CCJ) and card based services like Card One Banking who do not do credit checks.

Are card based business accounts safe and anyone had good/bad experiences?

I need a simple account to receive money so I can work as a contractor and receive the associated tax breaks etc for having a business with a business bank account.

If the above fails can I still receive money on a personal account e.g. my wife is also a director on the company and she has an active personal bank account, could we receive money into that account (I know more hassle to sort the accounts out later on though) or do we have to have a joint account to match the directorship on the company i.e. two directors and it needs to be linked to that company?

Thanks in advance,

T

[northernladuk]

https://www.businesscomparison.com/b...son/bad-credit

[Alan @ BroomeAffinity]

CashPlus do a non status account.

[ASB]

Although a personal account is not recommended it could be used as a last resort. Though I would suggest an independent used only for business.

A couple of threads

Running a company through a personal account | AccountingWEB
Limited Company - Personal Bank Account | AccountingWEB

It is fraught with issues.

Perhaps you may want to give serious consideration to an umbrella. Especially if the contract is likely IR35 marginal.

[Vurso]

https://www.businesscomparison.com/b...son/bad-credit

Thank you great resource.

[Vurso]

Thank you for the replies folks, just a quick update.

I applied to Metro Bank and was turned down, then tried Natwest/RBS for their Start-Up account unfortunately due to an active CCJ they turned me down.

This was also the case with Co-Op who said that the CCJ needed to be 6 years or older (?).

I applied to Santander who have accepted an initial application and are processing it but could be 50/50.

I have also applied to Barclays who have invited me in for a meeting and suggested I could get their start up business bank account service which would take 5 days to active pending approval (so would be a lead time of 3 weeks which is not good for me).

I applied for the Cashplus Business Card Account and obtained this service however I have some concerns as its a card account so there is a likely chance of a lot of extra charges being applied plus there is a £5 monthly charge but at least its a start (and never hurts to have a spare business account).

I will inform you folks of my other applications (Santander and Barclays) in due time.

Thank you.

T

[PurpleGorilla]

Hi,

As per the title I have the dilemma of trying to set up a business bank account for my limited company but I have some very bad credit history (due to fraud by a business partner in the past) and an active CCJ (defaulted on a mortgage).

Long story short I want to set up a business bank account and I was advised by several sources to try banks like Metro Bank (refused), Natwest/RBS (pending application but they want details on the CCJ) and card based services like Card One Banking who do not do credit checks.

Are card based business accounts safe and anyone had good/bad experiences?

I need a simple account to receive money so I can work as a contractor and receive the associated tax breaks etc for having a business with a business bank account.

If the above fails can I still receive money on a personal account e.g. my wife is also a director on the company and she has an active personal bank account, could we receive money into that account (I know more hassle to sort the accounts out later on though) or do we have to have a joint account to match the directorship on the company i.e. two directors and it needs to be linked to that company?

Thanks in advance,

T

I'd give up on Natwest. I bank with them and it was though to get the account set up and I am squeaky clean.

[Alan @ BroomeAffinity]

CashPlus is as good as you'll get. No extras. But you can't have more than £15k in account at anytime. High street banks won't touch you.

[LisaContractorUmbrella]

I understand your comment about the potential advantages of a Ltd Co but it sounds as though you are in a bit of a financial muddle - an umbrella company could be a good alternative for you until you get straightened out

[Vurso]

Thank you for the replies.

Lisa I was considering the Umbrella company but I wanted to take the risk and see if I could get myself set up (both a ltd company and a business bank account).

I am happy to inform that Santander came back with a positive and have provided me with a business bank account and a business saving account (including associated cards).

I was genuinely surprised didn't expect them to say yes so I am going to stick with them and its free banking for 18 months so I can't complain in that respect (I will still look at Cashplus /Cardone as a future option if I need an additional bank).

Thanks,

T