Possibly returning to the fold
Hi guys,
This thread is also of interest to me. I spent four years, on and off, jobbing at Ford. Unfortunately, contracting wasn't that kind to me and I ended up almost bankrupt after having the contract terminated in the black winter of 2009. Additionally I, too, suffered from making some poor financial decisions and, whilst I have no CCJs, I do have people hounding me for credit clearance. Living to your means is fine while you have those means. When it suddenly goes...
Anyway; I have recently been approached by the contracting agency I had originally worked with. Unless I can open a new business account, there will be no point in pursuing the Ltd company route again. However, this forum (and this thread in particular) have given me the incentive to at least make enquiries. My previous business account was with HSBC, which ran very smoothly. When it all went belly up, I opened a basic bank account with Barclays, following advice that, of all the big banks, it was one of the few that allowed bankrupts to reopen their accounts quickly. As I said; I never took bankruptcy but wanted to prepare for the possibility.
I will therefore approach both HSBC and Barclays this week to see if they will consider opening a business account. If they will allow it, then I will go through the process of registering a company and get the ball rolling again. I intend using the opener that, while I have zero funds and poor credit now, the fastest way for me to improve my income is the contractor route, so I would intend to address the creditors once I am up and running again. This may be hopelessly naive of me but has to be worth a shot.
Steve
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Previously on "Starting a Limited company: Will having a bad credt rating be a problem?"
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I can’t imagine how your credit rating can be even worse than the average bank’s credit rating.
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Thanks for your advice guys - I will make an appointment with my bank.
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Originally posted by Jubber View PostWhat utter twaddle - your answer implies that a bad credit rating means you are more likely to be become a criminal or fraudster. Rubbish.
Plan B Co still doesn't have a debit card after a year as they said they'd have to see regular money going in before they'd give us one. And neither me or my fellow director have any credit problems.
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Originally posted by Jubber View PostI suggest you (OP) go to the bank and make an appointment to see a business manager. Explain your history and explain what type of account you require. If you are straight with them there shouldn't be a problem. Don't expect them to shower you with debit and credit cards at the beginning - that will take time
I had some defaults from my student days and had the same concerns as yourself. Went into my bank, spoke to them, explained to them and managed to open the account. (Even if you dont tell them about your credit profile, they will get to know anyway from the credit agencies).
I was told I wont get any credit cards for the first year. But was called from the bank after 9 months and asked to collect the credit card for the company, with liberal credit.
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Originally posted by pmeswani View PostAssuming that you are not kidding here... yes it will. Setting up a Business Bank Account whilst having a bad credit rating shows that you are open to money laundering and other financial threats. Especially if you have CCJ's against you.
I suggest you (OP) go to the bank and make an appointment to see a business manager. Explain your history and explain what type of account you require. If you are straight with them there shouldn't be a problem. Don't expect them to shower you with debit and credit cards at the beginning - that will take time
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Originally posted by pmeswani View PostAssuming that you are not kidding here... yes it will. Setting up a Business Bank Account whilst having a bad credit rating shows that you are open to money laundering and other financial threats. Especially if you have CCJ's against you. You may want to look at using an Umbrella until your Credit Score improves.
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Originally posted by pault107 View PostI'm new to contracting and have already completed a few small jobs and more are on the horizon. I'm looking to set up a Limited company but I'm worried that my credit rating is very poor.
Will this affect my ability to open a business bank account? Any other issues I should be worried about?
Thanks in advance.
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Starting a Limited company: Will having a bad credt rating be a problem?
I'm new to contracting and have already completed a few small jobs and more are on the horizon. I'm looking to set up a Limited company but I'm worried that my credit rating is very poor.
Will this affect my ability to open a business bank account? Any other issues I should be worried about?
Thanks in advance.Tags: None
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