Reply to: Bank account with bad credit

[JamJarST]

I have a debt management plan. Natwest is on there aswell..

I was subject to an IVA and was able to get a basic business account from Santander. I used a third party to help with the process but to be honest I don't think I needed to.

[SimonMac]

I have a debt management plan. Natwest is on there aswell..

I think they might still be OK, I had a debt with Ulster Bank who is part of the RBS group and I still got an account, as said before best bet would be go to your local branch and talk to someone, where about's are you based?

[cameron2]

How bad? Do you have bankrupcys or CCJ's?

I have a debt management plan. Natwest is on there aswell..

[SimonMac]

Hi. Some of my clients that have bad credit use the Natwest Foundation account. They are an option.

A NatWest Foundation account gives your business the banking facilities it needs to get properly established and grow.

I have just transferred to one of these, originaly had to bring on another director (my dad) who opened the business account, it's not a free banking service, but to be honest I don't see free banking lasting very much longer

[SimonMac]

How do you open a business account with bad personel credit?

How bad? Do you have bankrupcys or CCJ's?

[cojak]

Thanks Nathan.

[Nathan SJD Accountancy]

Many different ideas but i think i will try the face to face approach.

I have a debt management plan with 7 years left to go!!

Hi. Some of my clients that have bad credit use the Natwest Foundation account. They are an option.

A NatWest Foundation account gives your business the banking facilities it needs to get properly established and grow.

[Sally@InTouch]

Try Lloyds TSB, face to face, first. Natwest have a "Foundation" account that they offer to you if you fail their credit check. Failing that, there are a few accounts you can buy on-line for around £150. PM me if you want the links.

Good luck!

[Sysman]

HSBC give a business bank account with no credit facilities but they do include a VISA Debit card for those hotel bookings, etc. You need to talk direct to a business banking representative there to ask for it.

I did it in the nineties after an unfortunate spell of permiedom left me with some CCJs, though I had paid the bulk of these off at that stage.

I formed a LtdCo first then took the certificate of incorporation, VAT registration and a copy of my new contract into a branch of HSBC and they happily opened a business account for me.

They wanted to see the originals for the certificate of incorporation and VAT registration, photocopies wouldn't do.

[EMEAfixer]

Visa Debit

HSBC give a business bank account with no credit facilities but they do include a VISA Debit card for those hotel bookings, etc. You need to talk direct to a business banking representative there to ask for it.

[cameron2]

Many different ideas but i think i will try the face to face approach.

I have a debt management plan with 7 years left to go!!

[Alan @ BroomeAffinity]

I had a client last week who was KB'd for a bank account with Santander (online app I think). I told him to call and explain that he needs no credit, no bank cards etc just a basic operating account for moving money into and out of. They were able to do this for them. I have had similar with RBS and (I think) Barclays. Pretty much all bank do it but as stated above, yo need to apply and be KB'd for a normal account first and then ask for the basic one.

[Mose]

Natwest are a good place to start, they are one of the few who plainly advertise. RBS used to be helpful, the deals move I think, try the startup forums I suppose. The small credit unions used to be helpful to guys like the OP if they are members already. Semitic banks and islamic banks are both popular with entrepreneurs with banking issues. A friend was helped by Lloyds as a walk in with a pending trial. The big name high street banks can normally help.

[cojak]

You'll need to see someone face-to-face and explain how you are going to manage your business finances better than you managed your personal ones.

Either that or stay perm, pay your bills and try again in 5 years time.

For the OP's benefit, is there any bank out there who'd give him a basic business account (no credit cards, just somewhere to park his company's money?)

Untruthful eh Mose?

So could you name some for the OP's benefit, as I asked before?

[Mose]

Pretty much all banks have the option to give you a basic bank account regardless of credit history, although it's extremely rare they advertise them. Often staff will not know they can use a different form, so ask for the manger. You mostly need to apply in person and apply for the basic option, standard applications (like net applications) are for non-basic accounts, after refusal they will not offer you the step down unless you ask.

There is no need for a third party or additional costs. Although these guys often simply know of many more banks to apply to, often small operations serving minority religious groups.

Business accounts are very similar except many will ask for a float of cash to open a minimum balance.

The main exception is for people convicted of financial fraud.

If you are genuinely not able to open a bank account, with a fraud conviction, there are still roads open to you opening a business, and full business bank account, although it's costly.

Basic bank accounts will not offer credit or guarantees, terms are different, some usual business services will be more expensive ro not available.