Limited Company Bank Account issue

[Mr Toad]

Greetings friends

I am looking to return to work as a contractor / temp. I have formed my limited company and I'm now trying to open a bank account - but I've been declined by Alliance and Leicester. They say it's because of credit reference data.

I am the sole director / shareholder and my brother is currently acting as secretary. A&L searched us both. My credit history is poor - I've been unemployed for a few months, but I've no CCJ's.. My brothers credit history includes a CCJ.

Is there anyone else out there in a similar situation and if so how did you get around the problem? Will all banks decline me?

Regards

Mr Toad

[Bigbird]

Who do you bank with personally, and do you have a good relationship with them?

That would be my first port of call I think.

It does make me angry though that banks can decline you an account (to give THEM your money ffs ) just because you have a poor credit history. You are not applying for bloody credit.........

[Mr Toad]

Thanks Bigbird, I bank with Nationwide and they don't do limited accounts unfortunately.

Regards
Mr Toad

[Not So Wise]

Did you try to give your brother signing powers on the account? That is only reason I can think they would run a credit check against him. Next one you apply for only have yourself as signatory

Try Abbey, they are slow as hell opening an account but if you are willing to supply them with bank statements and don't have a seriously BAD credit history they seem generally willing to open one

[Epiphone]

Go to Abbey. I'vee had two accounts from them and my credit rating isn't great.

[Ivor1]

Avoid Natwest Business Banking at all costs, cr*ppest service I have ever recieved from any company ever.

[THEPUMA]

Barclays are normally a good bet. Failing that something in the back of my mind tells me that if noone else will give you a bank account, the Bank of England will.

[oraclesmith]

One good tip is make it crystal clear up front what your business actually is and that you don't want a business loan or an overdraft from them - ever. The woman that I met to sort out my first business bank account was visibly more relaxed when I said that.

Remember as a limited company you will be put in the same category as fly-by-night rogue traders and startups with a bright idea and no business sense.

[dejongj]

Definitely a case of needing a visit in person and explaining what you want to a bank manager instead of computer....Also helps if you can show contracts for trading etc...

[Mr Toad]

Thanks again for all contributions.

I have forms etc. for Barclays, so I think I might give them a try. Also, good point about getting the actual contract in my hand and presenting that when applying.

I was thinking too that I could set up another limited company to act as secretary, then it's only down to searches on my history - which isn't great, but no ccj's.

Regards

Mr Toad