Business account

Richard475

Im starting my own business after being made redundant and need a business account. I dont want to borrow any money I just need the account to pay in cheques. The Yorkshire bank are being quite fussy about my credit history which I dont understand as I only want to pay in money. Ive also tried online at HSBC and refused with no reasons. Is there a bank that are more understanding? Thanks for any help.

not_tonight_josephine_2

Hi Richard, I'm not sure if it's still the case but Natwest used to offer a "basic" type of business account - similar to a basic current account in that it didn't offer any overdraft facilities etc. A few people I know have recommended Barclays as slightly easier to get a business account than other banks.

Failing that there is one option which should definitely work for you - many building societies offer a passbook account which is available to companies or charities and can be set up in your business name - bit of a pain to operate as I believe you have to go in every time you want to withdraw funds but would definitely allow you to pay cheques in. The Halifax has one called a "treasurer's account" I think, but smaller local building societies may be a good bet too as most Halifax staff don't seem to know about their offering!

Where are you based? The Newbury Building Society definitely has an account like this if that helps.

anniecave

is it just you working for yourself? If so why not just use your existing acount, or if you don't have one, just open a basic personal current account?
Then keep a record of everything going in and out relating to the business (and also anything not business) so you know have have records which you will need for income tax etc
Business accounts normally have a lot more charges than personal accounts so I would investigate this
Of course there may be a law somewhere which says if you are running a business then you have to use a "business" bank account but if you are self employed I wouldn't think you would have to..

olly300

anniecave wrote: »

Business accounts normally have a lot more charges than personal accounts so I would investigate this

Correct.

anniecave wrote: »

Of course there may be a law somewhere which says if you are running a business then you have to use a "business" bank account but if you are self employed I wouldn't think you would have to..

Correct.

If you are a sole trader then there is no tax difference between your own and your business income.

If you are a director of a limited company then the limited company is a separate legal entity so must have a bank account in it's own name.

Just some words of warning.

The majority of banks have T&Cs which means you cannot run any business (sole trader or limited company) from your personal account therefore:
1. Do not set up direct debits for NI contributions from your account
2. Ensure all cheques and other payments are in your personal name not the name you give your business.

If you don't the bank can close down your account which will affect your credit rating even more.

BTW if you don't know what a sole trader is I suggest you look it up - http://www.businesslink.gov.uk

97trophy

try Abbey, they offer free banking for businesses.

http://www.anbusiness.com/

Mark7799

NatWest http://www.moneynews.co.uk/4634/natwest-business-banking-launches-foundation-account/ Foundations account

Confused_Mother

I, like you am trying to get a business account with no borrowing (as i have terrible credit history) just somewhere to pay in cheques. Trying to get a Foundations account through Natwest but WILL NOT allow me to apply without going through the application of a normal current business account. Any experiences?