Start up business with default

BenS1

Hi,
I'm looking into starting my own business, which will be online so I require a bank account to process payments from customers. As it's a startup, and because of the nature of the business, I am not hiring any employees for now so I only have to pay for a virtual office and obviously the company website. Therefore, I see this as low risk.

I don't exactly have the best credit history (1 default from mid way through 2006), but I just want a no frills basic account. It would be good if it could be one that lets customers setup direct debits too.

Anybody been in this situation? Which banks should I approach?

Cheers

gazfocus

BenS1 wrote: »

Hi,
I'm looking into starting my own business, which will be online so I require a bank account to process payments from customers. As it's a startup, and because of the nature of the business, I am not hiring any employees for now so I only have to pay for a virtual office and obviously the company website. Therefore, I see this as low risk.

I don't exactly have the best credit history (1 default from mid way through 2006), but I just want a no frills basic account. It would be good if it could be one that lets customers setup direct debits too.

Anybody been in this situation? Which banks should I approach?

Cheers

I'd recommend Natwest. If they reject you for a normal business current account, you'll likely be offered a basic business account with them (however, you can't apply for the 'basic' account, you have to be rejected for a normal one first).

DesG

And you have no chance of getting customers paying you by direct debit, best you can do is get them to setup a standing order.

Cheers, Des.

jonesMUFCforever

You also stand absolutely no chance of getting payments by cards accepted with a basic account.
For this you will need a business account - have you spoken to the small business manager of your local bank?

The defaults might be a problem but on the other hand with a business account they might not! You won't know unless you ask.

Mark_In_Hampshire

Believe you have to be a limited company to be able to accept direct debit payments.

Closest alternative would be recurrent card payments which can be set up with an add-on to a Payment Service Provider account. Worldpay used to offer something like this, though I'm afraid I can't recall what the name of the service was.

datostar

Could you operate this through a PayPal Seller's Account? A lot of small internet businesses do seem to use it. Granted, you will need a linked bank account and PayPal will check you out, but all of the payment side is taken care of by them. Customers can pay via credit/debit cards, from a bank account if necessary, and they can set up recurring payments.