Business Bank Account For People With Bad Credit?

hens00

I've been working self employed on a sole trader basis for about 18 months now, and I really need to start trading as limited company. Unfortunately, the main stumbling block is the fact that I can't get a business bank account because of my previous bad credit.

Whats the best thing to do/ best place to go in this situation? I'm with Natwest at the moment and have about 4 different personal and ISA accounts with them with, but they wont even touch me for a business account despite me stating that I require no form of credit, overdraft or chequebook on my application. I even offered to put a large deposit into the account to act as security, but they werent interested.

They fed my details through a computer and the computer said no, and that was that.

Ive seen some adverts online stating that you can get guaranteed business accounts, but they look a bit dodgy to me.

never-in-doubt

hens00 wrote: »

Ive seen some adverts online stating that you can get guaranteed business accounts, but they look a bit dodgy to me.

They are! You pay them something daft like £80 and they say they guarantee an account.... all they do is work closely with key people at the main 4 banks and earn commission from any leads. If the account is declined then they move to the next. They have no powers nor any special leeway.

You can do the same. Have you tried HBOS, BOS used to do an ok, no frills, bus account?

hens00

No I havent tried them, but will have a look. I would prefer to know which banks are known to cater for bad credit as I dont want to waste time having to meet bank managers and having to sit down and explain what I do etc.

Ive just realised I have another slight problem. Chicken and egg situation. Im registered as a sole trader at the moment, so when I apply, I would be applying in my own name. But the purpose of me getting a business account is so that I can trade under a LTD company. But I dont want to set up as a LTD company first in case I am turned down for an account! If I register under my own name and managed to get approved, is it possible I can then change the account details to my LTD company name??

never-in-doubt

hens00 wrote: »

No I havent tried them, but will have a look. I would prefer to know which banks are known to cater for bad credit as I dont want to waste time having to meet bank managers and having to sit down and explain what I do etc.

Ive just realised I have another slight problem. Chicken and egg situation. Im registered as a sole trader at the moment, so when I apply, I would be applying in my own name. But the purpose of me getting a business account is so that I can trade under a LTD company. But I dont want to set up as a LTD company first in case I am turned down for an account! If I register under my own name and managed to get approved, is it possible I can then change the account details to my LTD company name??

Reason it is harder to get a Ltd Company account is exactly that, limited liability! Say you default on a company account, you walk away. If you do it as a sole trader, you are liable.

That is why it is harder - business accounts are always in the company name, sole trader accounts go in your name with T/A and business name (sometimes)....

hens00

Ok Ive just done a bit of searching on google, and there's been talk of Natwest having a basic account for people with bad credit via Direct Business Banking or something.Not sure how true this is, but since I already bank with them, Im gonna try again.

Why the original Natwest person I spoke to didnt offer me this I dont know. Probably due to the fact that he was incompetent at his job and didnt even bother telling me that my application had been turned down and I had to ring him 3 times to get an answer. But thats another story...

hens00

Ok heres another update for anyone whos interested. Just rang Natwest and asked them about this no frills account and they confirmed that it does exist.

Bascially it comes with no credit facilities and is offered to you if you are turned down for their standard business account. The woman I spoke to said that you are pretty much guaranteed to be accepted for this account as long as you are not bankrupt or have any IVAs.

Im chuffed with this news, and Im off to get incorporated. However, Im also very angry that the original Natwest person who I had to meet in person and sit down and explain for 45 minutes about my business etc didnt offer me this alternative account when I originally was turned down.

Yes, Paul Cox of Drapery Branch Northampton, thats you I'm talking about. Thanks for wasting my time.

savagej

Is Direct Business Banking at RBS branches rather than Natwest?

hens00

To be honest, I typed in Direct Business Banking Natwest into google and didnt get many results. Heres the forum I found the infomation at:
http://www.startups.co.uk/6678842909687799694/buisness-accounts-if-u-have-bad-credit.html

I ended up going onto the main Natwest site and rang the business line number.

Anyone know any good online company formation companies? Seems to be a lot out there.

456789

hens00 wrote: »

Yes, Paul Cox of Drapery Branch Northampton, thats you I'm talking about. Thanks for wasting my time.

LOL :rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

never-in-doubt

hens00 wrote: »

Yes, XXXXXXXX of Drapery Branch Northampton, thats you I'm talking about. Thanks for wasting my time.

Mate, i'd edit post and remove the name if I were you

hens00

To be honest, I did think about whether it was appropriate for me to publically name and shame this person. After about 2 seconds deliberation, I decided that it was ok.

There are plenty of threads/forums where people openly slate companies, so why not the individuals that work for these companies? This guy wasnt doing his job properly and as a result has cost me money and time. I could have been trading as a LTD company 6 months ago and made use of any tax advantages if it wasn't for this guy's incompetence.