Small Business Bank Accounts Discussion Area

rosa1979

Hi - for people asking about getting a business bank account with bad credit score-

Obviously it all depends on how bad your credit is, but mine isn't great and i've just opened one with Natwest (but other some other banks might be ok too).

Basically, don't apply online or on the phone - go into a branch. They'll probably ask you to wait for a while to see their busines manager or to make an appointment for a later date.
When you see the bank's business manager, explain your situation and ask for a basic bank account with no borrowing or additional services (Natwest's is called the Foundation Business Current Account - ask for it by name).

To open the bank account, you'll have to bring in two lots of ID for proof of your name and address - obviously i would try not to use a bill showing arrears as my proof of address for example.

The bank will also want to see 6 months personal bank current account statements, including an up-to-date print-off that you'll have to get from your bank. I have an (arranged) overdraft, and this passed without comment, but obviously if you have an unarranged overdraft it would look better if you paid it off or came to a formal arrangement with your bank before applying for a business account.

I also bought extra evidence with me:
* A profit and loss / business expenditure statement for the couple of months i'd already been trading (i put this together myself)
* My CV
* My business plan
* A written reference from a business start-up adviser who has been helping me write my business plan.
* A letter from HMRC showing that i've registered for Self-assessment
* A statement explaining what date i started my business, what my business did, relevant qualifications and experiance, what income i was currently recieving (benefits/tax credits etc), who i was getting advice from, and a brief explanation about my financial situation (debts/arrears) and what i was doing to repay them.

The bank's business manager asked a few questions, filled in some forms, photocopied some of my paperwork, did a credit check (which only showed what i'd already told him about) and then opened me an account. He said that the supporting evidence i had brought with me was a good idea, because it showed that i was running the business in a sensible and legal way.

jules1973

I have read the above msg with interest as my DH is starting up a business with two people, and we have a bad credit history in terms of being on a DMP and having numerous defaults.

I am looking at the Foundation Account from Natwest. We do not need any loans, credit or overdrafts of any sort as there is not much layout to set the company up.

Has anyone got any recommendations of other bank accounts. The other prospective partners have good credit ratings.

Seanymph

I am interested in an account for a charity - earning interest, with a £5,000 deposit that shouldn't need to be touched.

How do I find the best alternative?

I also have another sum which will need to be instant access.

Savvy_Sue

Seanymph wrote: »

I am interested in an account for a charity - earning interest, with a £5,000 deposit that shouldn't need to be touched.

How do I find the best alternative?

Sadly there's no alternative to working out what you want - you might get better rates if you can tie up for at least a year, for example - and phoning around.

I said elsewhere

Savvy_Sue wrote: »

Interest rates aren't great, but I suggest you look at Unity Trust, CAF and Triodos.

Seanymph wrote: »

I also have another sum which will need to be instant access.

Same applies, but worth saying that at work we're with Unity Trust, and have just the one a/c which pays as good a rate of interest as we are likely to get. Sure beats having to check how much you've got in the current a/c every time you want to make a large payment!

Seanymph

Thankyou.

I've only just taken them on, and it's a bit of a headache sorting it all out. So far I've more questions and no definitive answers at all

zcaprd7

Hi, I've been quite happy with my free banking account from Abbey - however Santander have decided to start charging fees - this seems a bit much!

I seem to remember Abbey advertising it a free banking for ever!

Edit: Just saw another thread here:

http://forums.moneysavingexpert.com/showthread.php?t=4074653

lovinituk

zcaprd7 wrote: »

Hi, I've been quite happy with my free banking account from Abbey - however Santander have decided to start charging fees - this seems a bit much!

I seem to remember Abbey advertising it a free banking for ever!

Edit: Just saw another thread here:

http://forums.moneysavingexpert.com/showthread.php?t=4074653

They are a business and if something is not making them any money then they will withdraw it. The people on that thread are blowing a lot of hot air - if they want to waste their time (time is money!) and energy over it, thats up to them. In my opinion they will get nowhere.

I'm moving to Barclays Business Banking - much much better online banking interface (been with them for personal banking for years and years) and the MyBusinessWorks package they offer is ideal for me and will actually save me money.

Paulgonnabedebtfree

lovinituk wrote: »

They are a business and if something is not making them any money then they will withdraw it. The people on that thread are blowing a lot of hot air - if they want to waste their time (time is money!) and energy over it, thats up to them. In my opinion they will get nowhere.

I'm moving to Barclays Business Banking - much much better online banking interface (been with them for personal banking for years and years) and the MyBusinessWorks package they offer is ideal for me and will actually save me money.

You may be right. Perhaps we will get nowhere.
However, if someone advertises "free business banking", the risk that it will one day be withdrawn is grudgingly accepted. If they advertise "free business banking FOREVER", then IMO it's reasonable to expect it NOT to be withdrawn. The question I would pose is, why use the word "forever" in the first place. Answer: To deceive and mislead.

lovinituk

Paulgonnabedebtfree wrote: »

You may be right. Perhaps we will get nowhere.
However, if someone advertises "free business banking", the risk that it will one day be withdrawn is grudgingly accepted. If they advertise "free business banking FOREVER", then IMO it's reasonable to expect it NOT to be withdrawn. The question I would pose is, why use the word "forever" in the first place. Answer: To deceive and mislead.

Policies change, bankers are bad and people decieve - get used to it. Its a big scary world out there!!

For a load of people who supposedly run businesses I'm surprised that so many can't see that it is simply a sensible business decision on Santanders part! Would you continue to offer something for free with your business if it was getting you nowhere?!

The amount of time that some people over there will spend !!!!!ing about it and trying to make a point, they may as well have paid for a decent account with someone else!! Time is money!!

Anyway, lets not turn this thread in to yet another debate over the rights or wrongs of a business decision, thats what the other thread is for!!

Paulgonnabedebtfree

lovinituk wrote: »

Policies change, bankers are bad and people decieve - get used to it. Its a big scary world out there!!

For a load of people who supposedly run businesses I'm surprised that so many can't see that it is simply a sensible business decision on Santanders part! Would you continue to offer something for free with your business if it was getting you nowhere?!

The amount of time that some people over there will spend !!!!!ing about it and trying to make a point, they may as well have paid for a decent account with someone else!! Time is money!!

Anyway, lets not turn this thread in to yet another debate over the rights or wrongs of a business decision, thats what the other thread is for!!

I don't want a heavy debate either. It is fair to say though that big businesses generally (not just banks) can make a decent profit from a product that is a loss leader. Bring the customers in with a loss leader and make the money on the other stuff they buy. It can be a sound business model if the people running the business are not incompetent, half brained f---wits. And there lies the problem I think. A brilliant loss leader that the Santander management are too stupid to take advantage of due to their own incompetence.