Need a business bank account

ZinKep

Hi there,

I've just become a sole trader and have just tried to set up a business account with Lloyds who I currently have a joint current account with. Obviously the heat must have affected the woman whom I dealt with as she was most aggressive and made me feel worse than something you could have trodden in.

Let me explain...

Earlier this year, my husband and I entered into an agreement with Pay plan to help with our then spiraling debts, which we are now paying monthly and our debtors seem relatively happy with their re-payments. I have been fortunate enough to be able to get some freelance work recently which seems will be extremely regular and will enable me to set up my own business doing the same thing for my growing list of clients. As I am now getting regular payments the only account I have that I can use is my joint current account so thought that I should try and get a business account. The lady in Lloyds said I was unable to get a business account as I had two defaults against me (last year prior to Pay Plan agreement) and then proceeded to tell me that under no circumstances should I use my current account for business purposes and basically threatened to retract our current account as they were unaware of our situation. She then went on to condemn my husband and I and how irresponsible we had been to get into debt. Of course, I am now terribly scared & confused and need to ask a few questions:

1. Can our current account be retracted? (we are now never overdrawn and have regular payments going into it)
2. What do I about setting up an account to have monies paid into? – obviously, I feel using my current account would be bad practice but feel I have little options left open to me but would obviously prefer to have an account where I can put monies in for tax & NI.

I am hoping someone can send some guidance my way – I’d also like some tips on Voodoo for use on start-up business clerks at Lloyds…

Thank you for taking the time to read this.

ZinKep:confused:

Horace

I am in the process of setting up a business bank account - with the help of my local chamber of commerce (I am on a New Deal programme that works with them). They told me at the Chamber that if I had any outstanding CCJs or had defaults then I would not be able to set up a business account.

You could try setting up a business account with another bank but they will also take into consideration your credit rating and the fact that you have had defaults and so you may be refused.

ZinKep

Hi there again,

I should also say that I do not need an overdraft or any loans as my business will be based from home. In addition, I have checked my credit rating with Experian, and I do indeed have two defaults but I guess thats the nature of the beast when you have to go the Pay plan route.

Thanks again.

martindow

If you are a sole trader you can use a bank account in your own name. It makes sense to have a separate account for business items but you do not need to have a business account. A separate account makes keeping your books simpler and also will please the Inland Revenue if they choose to check up on you. They really don't want to have to disentangle private and business items.

richt71

You can open a halifax treasurers account regardless of credit history. This is a paying in book type account so no cards or chequebook and no electronic movement of money OUT of the account unless to other halifax accounts but you can set-up bacs and chaps payments into the account. Just need proof of ID and company certificate (if a company). Be warned many halifax counter staff aren't aware of the account but I've opened a few before getting upgraded.

Savvy_Sue

I don't know how easy it would be, but I would look seriously into opening another personal bank account as well ... I know you'd have to keep on top of two personal accounts then, but at least that way if Lloyds did decide to close your account you'd have something set up and ready to run with. In time you'd probably want to close the Lloyds personal account anyway!

sammy115

Hi

I opened a halifax easy cash account, if you are a sole trader you could just open the account in your own name, and as long as you use it just for your business purpose you will be okay. Natwest also do a step account for business too. Good luck with the freelance.. We are in the same boat. Got into difficulties, now OH is freelance and earning good money but people are very wary of helping us.

ZinKep

Thank you for all your advice.

jojogirly

I got one opened in a few days with Natwest - with a cheque book.