Business Accounts.. Again!

Ashley01

Hi everyone,

Was just wondering whether anyone knows if it is possible for a 2nd Director to open the main business account for a Limited company...

I registered the business 4 weeks ago so are the MD however have an IVA. Natwest Foundation said it shouldn't be a problem initially, but their underwriters rejected it. I have a cash minder account with Co-Op but they don't have the same facility for business.

Also have a personal account with RBS that is unused but don't know whether I can accept standing orders into it, plus it's against the T&C's I guess.

So if I appoint a new director with good credit would they be able to open the account or will it still see little me in the corner and spit it out ??

Many Thanks

bengalknights

If there registered as a director at company house then yes they could potentially open it.

InsideInsurance

If it is a registered company then you cannot use a personal account as it is the business itself that has the account and not the directors etc.

With most banks they will need the authorisation from the major shareholders to agree to the account being opened, what the major shareholders is varies between banks - HSBC it is anyone with over 20% interest where as with Barclays I was told it was 5% or more.

jonesMUFCforever

They will credit score directors whether they have signing rights or not on the account - one bad apple could stop the bank opening the account for the limited company as you have found out.

smartiedriver_2

Banks will credit score all directors, all shareholders with a 20%+ shareholding and any 'principle controllers' e.g. those who use the internet banking forum. If any have bad credit the account will likely be declined.

Only option is to remove the party with the adverse credit at Co's House.