Best small business accounts for bad credit rating?

zappafan_2

Hi guys, hope you can help on this one!

I need to set up a business bank account real quick. My credit rating is pretty poor at the moment, will this be a problem?

many thanks again money savers!

James

COOLTRIKERCHICK

zappafan wrote: »

Hi guys, hope you can help on this one!

I need to set up a business bank account real quick. My credit rating is pretty poor at the moment, will this be a problem?

many thanks again money savers!

James

the answer i would have thought was yes you would have a problem...

banks have really tightened up on business accounts,

if you are that much of a hurray could you use your personal account until you find a bank that will open you a business account, or just go to your own bank and ask first...

zppp

COOLTRIKERCHICK wrote: »

if you are that much of a hurray could you use your personal account until you find a bank that will open you a business account, or just go to your own bank and ask first...

This is not sound advice I'm afraid. If business transactions are noticed on a personal account, it is normally reported to Revenue and Customs, as the banks deem it as a form of tax avoidance. I would suggest you either contact business link, or that you incorporate the company and get one in the company's name.

oliverp_2

Directors of limited companies would also be taken through a credit scored application so I don't think that would really help.

hopefulfooluk

zppp wrote: »

This is not sound advice I'm afraid. If business transactions are noticed on a personal account, it is normally reported to Revenue and Customs, as the banks deem it as a form of tax avoidance. I would suggest you either contact business link, or that you incorporate the company and get one in the company's name.

Where on earth did you get this piece of twaddle?! Granted, the bank may close the account as it's against the T&Cs of a personal account to use it for business purposes (you generally have to pay extra fees for a business account) but they won't tell HMRC unless they suspect something more serious like laundering is going on. It would be very difficult to tell most business transactions apart from non-business ones too in a lot of cases.

I am using a personal account for my business as I can't get a normal business account as I have a bankruptcy on my file - been doing so for well over a year and the bank hasn't said anything.

James - you could try approaching NatWest as they are probably the most flexible with their standard business account when it comes to bad credit applications.

jo8_2

I am also trying to get a business account with poor credit score.
I need to pay in alot of cheques at a time and got told if i do so using my personal account they will start asking questions and not allow it.