Reply to: Business Bank Account - Bad Credit

[SueEllen]

Two years later and it has made me understand the books, in fact so much as to say I don't use an accountant and we do everything ourselves.

Not surprised.

Lots of people behave better when the have to explain to someone they respect what exactly they are doing.

[SimonMac]

Thats what I am gonna do, I have a few weeks before I send my first invoice so that will give me time to set my father up as the sole director and him to open a business account, and I just be a shareholder.

It's gonna be fun with him controlling the money, and you stating why you need every amount released to you.

Least it should make you manage the books better.

Two years later and it has made me understand the books, in fact so much as to say I don't use an accountant and we do everything ourselves.

[SimonMac]

If anyone is struggling with business banking, I always suggest going track to whoever does their personal account. It's a good plan.

Thats what I did

[Jessica@WhiteFieldTax]

I have just set up a Ltd Company and have had real trouble opening a bank account for my business.I tried NatWest,RBS,HSBC,Santander and the Co Op in the vain hope that I would be accepted but all refused me due to
adverse information on my credit file.

However,I have a Cash Account (basic bank account) with Lloyds TSB which I opened easily with them a couple of years ago - no credit checks etc.. as it's a basic account but does have a Visa debit card with it.I phoned my branch the other day and spoke to a very pleasant lady and explained my predicament with my applications for a business account,and she asked me to go into the branch for a meeting which I have done and a business account was opened for me there and then - no credit check as my basic account was all the proof they needed ! There's no debit card with my account (yet) but all other facilities - paying in book,cheque book,direct debits etc..etc..

This might be the way to go for any of you struggling to open a business bank account and hope it might be of some help.

If anyone is struggling with business banking, I always suggest going track to whoever does their personal account. It's a good plan.

[keithc913]

I have just set up a Ltd Company and have had real trouble opening a bank account for my business.I tried NatWest,RBS,HSBC,Santander and the Co Op in the vain hope that I would be accepted but all refused me due to
adverse information on my credit file.

However,I have a Cash Account (basic bank account) with Lloyds TSB which I opened easily with them a couple of years ago - no credit checks etc.. as it's a basic account but does have a Visa debit card with it.I phoned my branch the other day and spoke to a very pleasant lady and explained my predicament with my applications for a business account,and she asked me to go into the branch for a meeting which I have done and a business account was opened for me there and then - no credit check as my basic account was all the proof they needed ! There's no debit card with my account (yet) but all other facilities - paying in book,cheque book,direct debits etc..etc..

This might be the way to go for any of you struggling to open a business bank account and hope it might be of some help.

[Jabari]

All,
I was in a similar situation for 9 mths. and thought that Halifax would save me. They had a no status (no credit score) pass book bus. acc. but cancelled this svc in Jan/2010. I was able to find another 'bank'. that offers a similar account. - Bath Building Society. The only credit service check done is to verify identity. They open your account within 2 days. Good luck

[FarmerPalmer]

Although you were not bankrupt, the references to which accounts are available may be useful.

[craig1]

There are extra concerns about being an employee rather than fee-earning director that are worth understanding, best talking to an accountant who genuinely understands the duties of employing people.

[SimonMac]

It's gonna be fun with him controlling the money, and you stating why you need every amount released to you.

Least it should make you manage the books better.

Once the account is open I'm gonna be made a signatory on the account so I won't have to go cap in hand asking for pocket money lol!

[SueEllen]

Thats what I am gonna do, I have a few weeks before I send my first invoice so that will give me time to set my father up as the sole director and him to open a business account, and I just be a shareholder.

It's gonna be fun with him controlling the money, and you stating why you need every amount released to you.

Least it should make you manage the books better.

[SimonMac]

Loads of agencies will refuse to do that.

They will only pay money into an account held into the company name i.e. the account name must match the other documentation you give them about the company. Some other larger ones demand a copy of a bank statement (with transactions blanked out) to confirm that it's the same account.

Personally I would either get a Halifax Treasurers account which is a passbook account, or pay to have the wife/another close family relation credit records checked and if they are ok make them the director with you as a 100% share holder and only employee.

Thats what I am gonna do, I have a few weeks before I send my first invoice so that will give me time to set my father up as the sole director and him to open a business account, and I just be a shareholder.

[SueEllen]

The site is still under development so you just got it at the wrong time, and and all that stuff is on the legal page so ner!

Is that why the legal page was hard to read?

Have a look around the web - the vast majority of companies have the company name, company registration number, company registration jurisdiction and company address neatly in one paragraph.

Anyway the site looks much better now.

Worse case if I can't get a bank account for the start of my contract, what would happen if I got the incovices paid it into a personal account, and then just paid it into the business account when its up and running? I assume the worse that could happen in the HMRC come sniffing around, but as long as everything else is legit its a telling off at most?!

Loads of agencies will refuse to do that.

They will only pay money into an account held into the company name i.e. the account name must match the other documentation you give them about the company. Some other larger ones demand a copy of a bank statement (with transactions blanked out) to confirm that it's the same account.

Personally I would either get a Halifax Treasurers account which is a passbook account, or pay to have the wife/another close family relation credit records checked and if they are ok make them the director with you as a 100% share holder and only employee.

[SimonMac]

You didn't give them your website to look at did you?

Good point.

I also think SimonMac you need to have a look at the Companies Act 2006 and Business Names Act 1985 as I can't see what jurisdiction your company is registered in.

The site is still under development so you just got it at the wrong time, and and all that stuff is on the legal page so ner!

Worse case if I can't get a bank account for the start of my contract, what would happen if I got the incovices paid it into a personal account, and then just paid it into the business account when its up and running? I assume the worse that could happen in the HMRC come sniffing around, but as long as everything else is legit its a telling off at most?!

[prudent consulting limited]

Natwest open a basic business account for directors with bad credit. It is only done over the phone. Try opening a santander business account online too. One of my clients with bad credit was able to open one online. All the best.

[contractoralan]

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