Bank Reference for small business

Little_Miss_Uni-Debt

Hi All,

I'm looking to rent out a small office for my new business.

I want to know if a bank reference letter is based on your general credit score or if it is based on your account history with the specific bank.

I have got funding from an Enterprise scheme to pay for start up expenses which would cover a years rent up front.

However, the office suite company want a bank reference and a personal reference.

I've got bad credit rating through issues with a HSBC loan which have been solved for a while now.

My main bank I use is Natwest, who I also have business banking with.

If I get a bank ref from Natwest will it be good as I have never had/used an overdraft or credit card or missed any payments with them OR will it be bad because overall I have a bad (but improving) credit rating?

Thanks!

kingstreet

Blimey! I haven't seen a bank reference in about 22 years. AFAIK it's based on your account conduct with the bank and nothing else.

The only one I can remember is "suitable for your numbers and purpose" or similar, prefaced by your initials.

Little_Miss_Uni-Debt

Thanks kingstreet. I've never had to get a bank reference before, even though I've rented properties, bought things that needed credit referencing before. I've even worked in a bank with strict reference criteria but this is a first for me.

Anyone know how long it takes to get one sorted?

Thanks!

Twister84

Shouldn't take long.

When we deal them, we need an official request from the company - in writing and on letterheaded paper. It is standard though, and what kingstreet said is spot on, including the fact that we can only put your ref number, if appropriate, and your initials on the letter.

There is a charge aswell for this - it's £7 something including VAT. (I know it's a weird charge amount )

PasturesNew

If it's a new business - and an office - have you looked into Serviced Offices. Easy in/easy out, everything laid on and ready for you.