Business Account & Iva

jo1967

Does any one have any advice on which bank to approach for a small business account for my sister who was subject to a final IVA 2 & half years ago?

Briefly she & a friend ran a seasonal party plan business last year, with the friend holding the bank account. It is a viable business & she wishes to continue alone now the friend has backed out.

She needs an account to bank payments in & pay stock bill out of.

I am helping her do the books & am prepared to be guarantor and/or joint account holder (I have no issues with my credit record).

She already is a self employed ofsted reg childminder so has to pay tax etc - of which there is no issue.

She currently has a managed bank account but the company do not provide a business account nor will they/can they make any recommendations.

Any advice gratefully received!

shelene

i personally would just try to get one with a bank that had a good offer on for the business, shouldnt matter which bank. - But be prepared if she gets a knock back due to credit history/IVA, if she does just try another bank, and so on, maybe one will accept her.

She cant really much more to damage her credit file so i wouldnt worry about that! (I also have an IVA)

Good Luck

jo1967

Thanks. I think she will try the bank that had the joint account to begin with.

PROLIANT

If she is trading as as a sole trader then she does not have to have a business account, just a seperate current account to do business with, I have had this confirmed from the HM Revenue and Customs officer. Try Lloyds TSB Cash account that comes wit a VISA Debit card or Yorkshire Bank where she will get a Meastro Debit card. Good luck.

jonesMUFCforever

The cash account does not come with a cheque book facility - a business may well need this option IMO.

PROLIANT

jonesMUFCforever wrote: »

The cash account does not come with a cheque book facility - a business may well need this option IMO.

Cash slow? Na you might get away with it via BACS and VISA.

jo1967

PROLIANT wrote: »

If she is trading as as a sole trader then she does not have to have a business account, just a seperate current account to do business with, I have had this confirmed from the HM Revenue and Customs officer. Try Lloyds TSB Cash account that comes wit a VISA Debit card or Yorkshire Bank where she will get a Meastro Debit card. Good luck.

Thats interesting. I will have to check with her about how her stock bills can be paid.

Food for thought - thanks.

jo1967

Alx_B wrote: »

Unless the rules have changed since I went self emp (a few years now), you don't even need to have a seperate account for the business, you could *theoretically* run all the business finances out of your personal current account, *but* the standard advice was that this isn't a good idea, as if the revenue do decide they need to look at your accounts for any reason it can make your life a *lot* simpler if all the business stuff is completely seperate from your personal finances.

Thanks - she cant run from her current acount as its a "managed account", it has two parts bills in A "usable" cash in B, they take money from B at will & put into A - no good when there are stock bills to pay, plus she wants to keep the money seperate.

For info she sold stock last season (sept to beg Dec) of £22K.