Can we get a business bank account with bad credit?

Jabee

Hi,

My hubbie had recently started up a new business and needs a business bank account.

Unfortunately he has bad credit and is currently in a debt mgmt plan. He has been turned down by HSBC & the debt mgmt co has advised us it may be hard to get a business account with his credit record.

Does anyone know of an account he could try for? ...seems so unfair he's not asking for an o/d or credit - just want to get the new business going legit & make some money so he can pay his creditors off and get out the debt mgmt plan!

Any help or advice really appreciated!

THanks!

Olipro

assuming he's not an undischarged bankrupt his best maneuver would be to register a limited company and then get an account in the name of the company.

Jabee

Oilpro

Thanks for your reply - yes he is not undischarged bankrupt - I will start researching setting up ltd co - had not thought of that

Thanks!

goingforward_3

We have a limited co and the account is held with Natwest... unfortunatly we are about to enter a dmp and natwest/mint are 2 of our creditors.

I have been trying to move the business account (i am petrified they will offset money from it against money owing to them ) and its proving difficult because directors of ltd companies (so my husband and i) are credit checked and once banks see our credit report they dont want us lol.

We dont have (or want) a overdraft/loan or credit cards with the business account.. just a basic account will do.

olly300

Jabee wrote: »

Oilpro

Thanks for your reply - yes he is not undischarged bankrupt - I will start researching setting up ltd co - had not thought of that

Thanks!

That won't help you at all unfortunately.

Directors of limited companies are credit checked personally every time the company wants credit from a bank or a telephone company.

This may still be of use - http://www.halifax.co.uk/savings/treasurersaccount.asp

As the account is a passbook account you can't go overdrawn. You also won't get a cheque book.

Be warned the staff at the Halifax won't of heard of it so you need to take a screen print out and tell them to talk to head office.

olly300

goingforward wrote: »

We have a limited co and the account is held with Natwest... unfortunatly we are about to enter a dmp and natwest/mint are 2 of our creditors.

I have been trying to move the business account (i am petrified they will offset money from it against money owing to them ) and its proving difficult because directors of ltd companies (so my husband and i) are credit checked and once banks see our credit report they dont want us lol.

We dont have (or want) a overdraft/loan or credit cards with the business account.. just a basic account will do.

The limited company is a separate legal entity from you so if they off set funds that they are breaking the law as the company is not you.

However there is nothing stopping them freezing the account or telling you to move to a different provider.

jonesMUFCforever

The Halifax treasurers account is not a business account and cannot be used for that purpose.
In any case any account signature will be credit scored and therefore any bad credit history would make it unlikely that they would open the account for you.

adam91_2

I know lots of businesses that use a Halifax Treasures account instead of a business account.

So yes you can.



Adam

goingforward_3

olly300 wrote: »

The limited company is a separate legal entity from you so if they off set funds that they are breaking the law as the company is not you.

However there is nothing stopping them freezing the account or telling you to move to a different provider.

Thankyou

When you say freeze the account... how and why would they do that and how do i unfreeze it (if thats the correct term)... at the minute there is a lot of money in it to pay the tax bill at the end of sept and i dont want that money freezing.

Re credit checking directors.. i understand they do that when appling for overdrafts/loans etc etc but do they credit check you when you apply to open a bank without a overdraft.

samwsmith1

Jabee wrote: »

Oilpro

Thanks for your reply - yes he is not undischarged bankrupt - I will start researching setting up ltd co - had not thought of that

Thanks!

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073865436

jonesMUFCforever

adam91 wrote: »

I know lots of businesses that use a Halifax Treasures account instead of a business account.

So yes you can.



Adam

With the level of scrutiny (not) carried out by HBOS before it ruined LTSB why am I not surprised!