bad credit rating need business account?

ebenezergb

Hi

We are currently looking to setup a new business where money will be received by direct debits.

We need a business account to do this but we have a very bad credit rating.

We do not require and overdraft or loan facilities.

Does anyone have any suggestions?

Many thanks

smartiedriver_2

Hi

It depends how bad your credit rating is. HSBC sometimes offers people business accounts with a NIL borrowing limit if you pass the general credit scoring but fail for borrowing.

If you have adverse credit (CCJs, IVA, bankruptcy etc) then they won't accept you at all.

ian_h

Do you mean you want your business to be a DD originator or are you meaning you will accept payment by Standing Order?

To become an originator is quite a lengthy process (and expensive) although you can use bureau facilities at a fee.

Nat West do a foundation account for business which is basically a basic bank account for business so you wont get any OD or lending facilities, this account is fine for receiving SO payments.

If you want to be a DD originator in your own right (i.e. not via a bureau) your bank has to sponsor you and as the DD guarantee means your receipts could be reversed at any time you would, I imagine need a pretty healthy credit rating with your bank for them to agree to this.