Can we get a business bank account with bad credit?

adam91_2

Haha!! That may just be the case.

pipsi_2

I am also in a similar situation, I tried to open a business bank account with Lloyds (the bank i currently bank with) and i was turned down because of a couple of missed direct debits supposedly, i also, made an arrangement to pay back what was owed on my credit card while i was a student (i had no say in this, i was all organised by my university who made it a condition of my receiving a bursary to make arrangements with my creditors, i was not informed that this would affect my credit rating).

I don't want any overdraft or credit card, just a business account i can pay money into and take money out of, i'd probably be looking to swap my current account to the same bank to make transferring money from my business account into my current account each week easier than it taking three working days to transfer. I would however like a debit card that i can use for business transactions, due to the nature of my business these will only be fairly small transactions.

I've noticed that some banks do a 'basic' or 'foundation' business account for those with poor credit ratings, i'm considering these although i've just been looking at Santander and i'm considering trying to open an account with them, the branches local to me are all open all day on a Saturday which i would find really useful.

sassy_one

Keep in mind, he will need to go through some kind of Credit check and ID check OP

pipsi_2

Santander declined my application, i was really annoyed because i made it clear from the start that i didn't want any credit facility, just an account for transactions to go in and out of. The lady didn't even tell me i would be credit scored, which i thought they had to do before credit scoring anybody.

Anyway i've decided i'm going to try and open an RBS Foundation Business Account because i already have a graduate account with them which i've maintained well although i'm close to my overdraft limit. I guess a bonus for them will be that i'll start using that account as my day to day current account again if i open a business account with them. Does anyone have experience of opening a Foundation Business Account with a CCJ? An ex employer has entered a CCJ against me for a supposed overpayment of salary, they did this without my knowledge and haven't even produced any evidence that they did overpay me despite me asking for this information several times. I'm in the process of trying to get this reversed as i'm adamant that i do not owe them any money.

startingagain9

I opened a Halifax Treasurer’s account after reading about it on here. It’s been OK for the 2 years that I’ve been using it, apart from the hassle of doing everything in branch with a passbook but I’ve just accepted that’s the price to pay for having a bad credit history and not being able to open a business account elsewhere.

However, I was told by Halifax branch staff last week that the Treasurer’s Account will be limited to issuing cheques of over £500 only from next year. I’ve also been told that Halifax don’t like the Treasurer’s Account and are eventually going to close them all down! No doubt because they don’t make much money from them as there are no bank charges with the account?

The banking adviser said that Halifax want to eventually transfer all Treasurers Accounts to the basic Lloyds TSB Business account. I explained that this was a problem for me because I’ve been refused a basic business account in the past due to my adverse credit history (some with Lloyds!!). The adviser said this should not be an issue as they can open me an account without a borrowing facility. I’m not sure I believe this would be possible for me and even if they did do this, I don’t want to have to start paying bank charges, even though my account would be permanently in credit.

The other major issue is that I don’t want to have to change my account number as I have regular payments made to this account from different companies and it would be a logistical nightmare to contact them all to tell them I have a new account number.

The way things stand at the moment, I’m going to have to just withdraw in cash any amounts under £500 that I need to pay clients and pay it directly into their bank accounts. Although this will solve the short term problem of the £500 rule, I have a feeling that Treasures Accounts are going to be completely closed down eventually and that will be a real problem for me.

I just wish Halifax would give the Treasurer’s Account full internet banking to enable me to make any payments via the net – at the moment all I have is a view only internet banking which is standard for the Treasurer’s Account. Surely this would solve Halifax’s problem of not wanting the expense of customers going into branch for cheques?

Are there any Halifax employees or fellow Treasurers Account holders who could advise on my best course of action?

Davidbd

i can help to open lloydstsb business account for you.

thanks
davidbd
ukofficebd@gmail.com

lolavix

Natwest do a Foundation Business account - you can still have a cheque books and debit card, just have no credit facilities. As long as bankruptcy has been discharged then they're fine to open. Plenty of customers are in DMP's with a Foundation account.

bridges

lolavix wrote: »

Natwest do a Foundation Business account - you can still have a cheque books and debit card, just have no credit facilities. As long as bankruptcy has been discharged then they're fine to open. Plenty of customers are in DMP's with a Foundation account.

Many thanks for this advice.We have just set up a limited company.I have a few blips from my past which have never ever affected me in any way.We applied to the HSBC for a business account and were turned down because of the credit check.I rang the nat west after seeing this and although we havent been accepted yet the lady was extremely helpful...Sometimes people make mistakes or something happens in there past.Its nice to know that in this day and age you can be lucky enough to have a second chance.We have money to invest and are totally solvent so lets hope that Nat west is for us....Thanks for this advice.I would reccomend that others in our place would ring up and at least get advice like we did.

Harryo

I likewise was turned down by Santander after about 6 weeks of phone calls chasing them up. I then went to our local HSBC branch and within half an hour face to face had an account. Maybe a lot depends on the person you are dealing with.