bad credit business account

bscra1961

After being paid-off last year I decided to set up my own business. This has all gone very smoothly apart from the fact that I can't seam to find any bank's who will provide a basic business bank account to me.
The basics are that I have a poor credit rating and therefore do not meet the criteria for any of the high street banks. I have checked out online for any other way I can obtain one and there does not appear to be an option.
So I'm asking the experts on here what I can do? I want to run my business legitimatly.

Can I put the business in a family member's name but still run as a sole trader or do we have to be a limited company?

Any help appreciated.

ian_h

Have a look at the Nat West Foundation account its a "basic" business account (i.e. no overdraft or lending facilities) specifically or those who cant access a mainstream product (RBS do the same product in Scotland).

You'll need to be on electoral roll and can only apply in branch so you need an appointment with the branch's business banking adviser.

A sole trader is just that so if you did form the company in someone else's name THEY would be the sole trader and own the business.

The Limited Company Idea however could work if you owned 100% of the share capital and appoint a Director to run the company, you may however find that the bank is interested in knowing who owns the share capital as well as who controls the company.

As long as you understand your obligations as a limited company / shareholder / director / secretary you can form a company in less than an hour for less than £20 online these days.

Good luck