Discharged bankrupt - way round setting up business bank a/c?

jnmast222

I am a discharged bankrupt (now 6 months from discharge) and was turned down by NatWest recently for a business bank account. I understand they may be the only bank that opens account for those with poor credit histories but was refused because I had been discharged for less than a year. Unless someone knows better......

I thought of a possible way around the process but very much appreciate some feedback as to whether it might be possible.

A friend with a good credit history has offered to set up a Limited Company and a bank account where he is the sole director. He could then invite me to become a director and I would apply to become a signatory on the bank account. When that was set up he would then resign from the company.

I guess the most rigorous application of credit checks would be at the opening of the account rather than adding signatories as the original person applying would be the 'dominant' account holder.

Would this be possible or feasible?

Alternatively what's the latest on banks / post office allowing business account set up for discharged BRs?

Any thoughts would be much appreciated.

Thanks.

confused76

i'm not sure about what you propose....the only accounts i know of for bankrupts are basic accounts by the coop and barclays, these are not business ones though...

UnderPressure

You are going to struggle

Your friend cannot set up a LTD company on his own there has to be a minimum of 2 people to register and probably the same with a ltd company bank account they will want all directors on the application and then they get individually scored, dont take my word as 100% you need to go and do some research but as far as I know this is correct.

I cannot think of a way around TBH unless you have your partner (if you have one?) go on the director list with your friend and also on the bank account then after a year you could review things and then add yourself from there.

I would consider giving Barclays a try though, I had a couple of business accounts with Barclays a couple of years ago, I was not bankrupt but had CCJ's coming out of my ears and they opened them as a sole trader with no issues.

HTH and best of luck

So_Sad_Angel

UnderPressure wrote: »

You are going to struggle

Your friend cannot set up a LTD company on his own there has to be a minimum of 2 people to register and probably the same with a ltd company bank account they will want all directors on the application and then they get individually scored, dont take my word as 100% you need to go and do some research but as far as I know this is correct.

Since 6th April 2008 a Limited Company can be set up with just one director. Even the need for a company secretary is optional. A minimum of 2 directors are only a requirement for PLC`s.

http://www.completeformations.co.uk/companyfaqs/company_secretary/secretaries.html

Do you need to be Ltd? maybe a sole trader is a more workable for now?

Do try Barclays.....I agree with Underpressure they do tend to allow more explanation & appeal in their account opening procedure.

jnmast222

Many thanks for your replies.

I will need to use a Limited Company or Limited Liability Partnership as the IT agencies I deal with insist on one or other when drawing up a contract.

Very useful to know only one director is needed and no secretary. I will try Barclays.

I have been reluctant to approach too many banks as I thought my credit score might go down on each application just through the action of them doing a credit search and being turned down.

Is that the case?

darkblue_2

It's best to leave 6 months for every two applications. The credit footprint can be off putting to lenders. However, in your situation, it's obviously the bankruptcy that's putting people off so I wouldn't worry too much about it. Just don't go crazy and apply willy-nilly.

How important is the business bank account for the purposes of the company?

If it's for image purposes, you could approach your current personal bank and ask them to change the name to 'Name Trading As Name' or if you do set up a Ltd company, you can approach your bank manage with a business plan and explain what caused you to go bankrupt and hope that he can offer you something.

JPS29

Did you specify to Natwest that it was the business foundation account you wanted? This is different from the "normal" business acc with no lending facilities etc but evrything else you need such as cheque book ability to send/receive payments...........