Natwest Business Accounts

Confused_Mother

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After doing some digging around I've found that the best business account for someone with a terrible credit rating is a Natwest Foundation account as I'm already a Natwest Step account holder.

After calling to seek further information I was told that it would not be possible to apply for Foundation account without apply for a normal business account first, which is almost guaranteed to decline, hence another blemish on my already battered credit file!!

Is this true or have I missed something?
Any help greatly appreciated.

Confused_Mother

After doing some digging around I've found that the best business account for someone with a terrible credit rating is a Natwest Foundation account as I'm already a Natwest Step account holder.

After calling to seek further information I was told that it would not be possible to apply for Foundation account without apply for a normal business account first, which is almost guaranteed to decline, hence another blemish on my already battered credit file!!

Is this true or have I missed something?
Any help greatly appreciated.

[Deleted User]

Are you sure you need a business account? I think lots of sole traders use a personal current account. I guess it would be more difficult if you need to bank lots of cash or something, but worth thinking about, if only as an interim measure whilst your credit history settles down.

Extant

anactuary wrote: »

Are you sure you need a business account? I think lots of sole traders use a personal current account. I guess it would be more difficult if you need to bank lots of cash or something, but worth thinking about, if only as an interim measure whilst your credit history settles down.

This is a breach of the personal T&Cs with pretty much every bank known to mankind. Banks can/will/do close on people who do this, which would make his credit score even worse if it showed a bank had closed on him.

[Deleted User]

BarclaysManager wrote: »

This is a breach of the personal T&Cs with pretty much every bank known to mankind. Banks can/will/do close on people who do this, which would make his credit score even worse if it showed a bank had closed on him.

I agree.

My point was that if he was in a grey area (say an IT consultant who gets paid by BACS once a month, or once every 3 months etc), he may be self employed for tax purposes, but is it really very different to someone employed in a job?

In a black & white world, yes, it's different, but I suspect lots of banks have lots of customers using their accounts in this way and would struggle to identify them. I'm not endorsing it, just pointing it out (please don't shoot the messenger).

Confused_Mother

I see. It would be a Landscaping & Gardening Services business so it would need to be some kind of account in a the business' name. But is there any information on applying directly for the Natwest Foundation account without being 'DECLINED' for the normal business one, trying to evade another blemish on the credit file? As after speaking to C.S at Natwest this is apparently the only way to apply for the Found Acc to "keep it fair for all customers", but this did almost side like a sales pitch?!?!

Kavanne

Yeah she probably gets less points for a foundation account than a standard business account. Phone up business and try again. Explain why you only WANT the foundation account and not the normal business account. If you say 'Oh I think I'll only be eligible for the foundation' they'll try and get you to go through the app but explain you do not want any credit facilities.

withnell

Much more likely to get accepted for any account if you don't apply for an overdraft - cos in that way you're not actually asking the bank to lend you anything

Kavanne

withnell wrote: »

Much more likely to get accepted for any account if you don't apply for an overdraft - cos in that way you're not actually asking the bank to lend you anything

I can only speak for natwest personal accounts but if you're not eligible for a current account you're not eligible, overdraft or no overdraft. In fact, it assesses what you're eligible for before even asking about overdrafts.

chambta

anactuary wrote: »

I agree.

My point was that if he was in a grey area (say an IT consultant who gets paid by BACS once a month, or once every 3 months etc), he may be self employed for tax purposes, but is it really very different to someone employed in a job?

In a black & white world, yes, it's different, but I suspect lots of banks have lots of customers using their accounts in this way and would struggle to identify them. I'm not endorsing it, just pointing it out (please don't shoot the messenger).

You're spot on. At my branch there are several that clearly do and as long as the cash is kept to a minimum and the account run well it's not something we're going to kick up a fuss about.

Extant

If you must break the T&Cs, then don't set up a National Insurance direct debit on your accounts. More than one bank "hunts" for them.