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    • casterlyrock
    • By casterlyrock 26th Oct 17, 6:59 PM
    • 26Posts
    • 5Thanks
    casterlyrock
    Business bank account with poor credit history?
    • #1
    • 26th Oct 17, 6:59 PM
    Business bank account with poor credit history? 26th Oct 17 at 6:59 PM
    I'm a discharged bankrupt (discharged May 2016), and whilst my credit rating is improving steadily, it is still poor understandably. My only bank account is a personal, basic Nationwide account.

    I'm launching a start-up business in the next few months and will need to open a business bank account. I don't need anything special such as an overdraft or anything like that, just a separate account.

    I've read that it can be very hard for people with poor credit to be approved for a business bank account, despite it being a separate financial entity. What I don't want to be doing is applying to every high street bank in the hope of being accepted, as it will just impact further on my credit report having so many searches.

    What are my options here? Can anyone recommend a particular bank or bank account that is likely to accept me?

    Thank you.
    Last edited by casterlyrock; 26-10-2017 at 7:12 PM.
Page 1
    • Neil Jones
    • By Neil Jones 26th Oct 17, 8:29 PM
    • 1,071 Posts
    • 597 Thanks
    Neil Jones
    • #2
    • 26th Oct 17, 8:29 PM
    • #2
    • 26th Oct 17, 8:29 PM
    In theory you only need a business bank account if you're setting up as anything other than a sole trader, because a sole trader is the business with no need to keep things separate, though it helps for self assessment rather than wading through transactions for Tesco and what not in amongst everything else.

    However in practice most personal bank accounts have it in their T&Cs that you can't use those accounts for business even as a sole trader.

    The easiest option is CashPlus, which is no credit check required but doesn't attract particularly good reviews service wise and has a fairly high annual fee. While most business bank accounts charge you for processing cheques, duplicate statements, scratching your nose, etc, most high street banks tend to give you anywhere up to 2 years free business banking. CashPlus doesn't.
    • casterlyrock
    • By casterlyrock 26th Oct 17, 8:57 PM
    • 26 Posts
    • 5 Thanks
    casterlyrock
    • #3
    • 26th Oct 17, 8:57 PM
    • #3
    • 26th Oct 17, 8:57 PM
    In theory you only need a business bank account if you're setting up as anything other than a sole trader, because a sole trader is the business with no need to keep things separate, though it helps for self assessment rather than wading through transactions for Tesco and what not in amongst everything else.

    However in practice most personal bank accounts have it in their T&Cs that you can't use those accounts for business even as a sole trader.

    The easiest option is CashPlus, which is no credit check required but doesn't attract particularly good reviews service wise and has a fairly high annual fee. While most business bank accounts charge you for processing cheques, duplicate statements, scratching your nose, etc, most high street banks tend to give you anywhere up to 2 years free business banking. CashPlus doesn't.
    Originally posted by Neil Jones
    It's a limited company unfortunately. I've read on a few other forums that people seem to have more luck with Santander after being rejected with other high street banks for poor credit, so that might be my first port of call. Just wondered if there was any way of increasing my chances with other high street banks.

    Like I said, not after any kind of overdraft facility or any special, and would like to avoid something like a CashPlus account but worst case scenario it will have to do.
    • Neil Jones
    • By Neil Jones 27th Oct 17, 11:30 AM
    • 1,071 Posts
    • 597 Thanks
    Neil Jones
    • #4
    • 27th Oct 17, 11:30 AM
    • #4
    • 27th Oct 17, 11:30 AM
    There's a few options here to look at:
    http://www.ukbankaccounts.co.uk/basic-business-bank-account/
    • c-m
    • By c-m 10th Jan 18, 8:52 AM
    • 745 Posts
    • 253 Thanks
    c-m
    • #5
    • 10th Jan 18, 8:52 AM
    • #5
    • 10th Jan 18, 8:52 AM
    How did you get with this? Did you try tide yet?

    There's an overview in the link below, but checking the comments it seems hit and miss as to whether it's much cop.
    http://moneysavinganswers.com/business/banking/tide-the-business-bank-account-alternative/
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