Desperate for business bank account

**weemster** · 2 September 2006, 14:24

All the business accounts that I have opened have taken a least a month. Its a bit of a fag but the credit checks are to stop money laundering etc. If you are desperate I would appy for a couple and see who comes in first. Not much use but I had the same problem when I first went contracting - luckily I had some cash saved for just that reason.

**DaveB** · 2 September 2006, 14:39

Originally posted by darrenb

I just started on a good contract, but can't figure out how to get paid! My experience with the banks has been frustrating. I think it's because I'm new in the country.

Money is tight and my agency is waiting for my bank details, so I'm trying to arrange an account for my limited company as soon as possible. Alliance & Leicester said it would take a month to set up. Cater Allen said I had to give them £5000 up front. Halifax rejected me because I don't have a credit history (I don't need an overdraft but they still rejected me for a simple Treasurer's).

It would save my bacon if I could get this done in the next week. Even if it's a terrible fee-paying account... what are my options? Is there an account that doesn't do a credit check, and doesn't require a deposit?

Also, does it make sense to apply for 2 or 3 accounts at once and see which one comes through first?

D.

Join the PCG and you can get an account with CA without the £5000 opening balance.

**darrenb** · 2 September 2006, 16:28

Pcg?

Originally posted by DaveB

Join the PCG and you can get an account with CA without the £5000 opening balance.

Well, is the account automatic then, or do they do a credit check? How long does the process take?

D.

**cyberduck** · 2 September 2006, 18:10

Perhaps a business advisor - its just an idea...

Hi

When I started my Web Design business I got an accountant to help out with this process. Some have good connections within certain banks and can give you good tips depending on what type of account you require. Perhaps talk to Wisteria who are excellent Business Advisors

Just a thought - might help the process for you.

Good luck
Danny

**CaribbeanPirate** · 2 September 2006, 19:42

Originally posted by weemster

... the credit checks are to stop money laundering etc..

Credit checks have nothing to do with money laundering. They are about protecting the bank from risk.

They are obliged to do an identity check (often referred to as know your customer) as part of their due diligence; but the credit checks are for their own benefit.

Wanting to open an account in a hurry without any history (good or bad) and being from abroad is going to raise the red flag for the fraud and money laundering people and it no wonder you were rejected.

However, try HSBC. I don’t know if it is still true, but I’ve known several people from abroad that managed to get bank accounts with them.

Now, for all you lot laughing at me with a Cayman Islands bank account. I have to tell you that it was a nightmare to get. They are BIG on getting rid of all associations of dodgy dealing. They call it ‘The Firm’ problem after that book and film. I had to make sure that all my records were squeaky clean had to get references with details of average balances over the previous two years and extensive details of what deposits were for and from where.

**oraclesmith** · 2 September 2006, 20:17

Some banks such as Natwest provide a restricted business bank account which is designed for those with an unknown or poor credit history. Natwest had this as an option a year or so ago, but I don't know if they have that option anymore.

I have found the Co-Op very responsive and you can apply on the phone. They all may have problems with your background - especially as you are going for a limited liability company and not a sole trader (ie. there is a danger of the limited going bust and them not getting any loans etc back). You may have been better to register as a sole trader for a while so you get a credit history. If you were a sole trader you would use your personal bank account and be personally liable for any losses you make while trading. Of course you would also pay normal income tax. All the banks must follow compliance procedures so there are no short cuts, although some may be faster than others.

Most banks will worry that you might overdraw or require a startup loan - it is very common for new businesses to do this and a lot of them don't make it into profit and lots go down owing the bank money. As a limited company (regardless of what trade you're in), you will be put in roughly the same sort of risk category as first-timers who want to open up a shop or make some sort of product to sell. It's easier to go for bank accounts which have no overdraft facilities and make sure they know you don't need a startup loan.

I had problems with my bank at first, even though I had been a personal and joint account customer of theirs for many many year and I had explained numerous times that I wouldn't need a loan and I just needed a place to deposit my company's fees. But with so many startups going under and leaving debts, you can see their point.

**darrenb** · 2 September 2006, 21:34

Thanks for all your remarks.

Somebody mentioned the Co-operative Bank. I actually applied to them for a personal bank account. They said no problem, then a couple of weeks later they sent me a rejection. It is this kind of time-wasting nonsense that I am trying to avoid.

I don't need an overdraft and I wasn't planning on any laundering. All I need is a place to dump my money.

I asked my accountant and he said he couldn't help me because the banks are "bound by their procedures".

I might have to resort to a cheque cashing shop, but I don't know if they do cheques made out to a business?

It all seems so absurd. I have a good job, a good income, and no history of wrongdoing. All I want is to get paid.

D.

**dmini** · 2 September 2006, 22:23

Some agencies will pay into either a business account, or a Personal Bank account - in your name only. I nearly ended up having to do that. Now that could get messy, but if your agency will do this, you have a route for getting paid. You could open a separate really basic personal account and use that. That way you are keeping the company money separate from "your" money - makes it easier for accountancy stuff, and keeping track of your money.

**boredsenseless** · 4 September 2006, 07:20

Originally posted by dmini

Some agencies will pay into either a business account, or a Personal Bank account - in your name only. I nearly ended up having to do that. Now that could get messy, but if your agency will do this, you have a route for getting paid. You could open a separate really basic personal account and use that. That way you are keeping the company money separate from "your" money - makes it easier for accountancy stuff, and keeping track of your money.

Oh dear ... I can't be bothered to once again go through the reasons why its a bad idea but this is a really really stupid thing to do.

Desperate for business bank account