Business Bank Account with Poor Credit Rating

gibboking

Hi There!!

I was just wondering where would I stand with opening a business bank account with a very poor credit rating? I am about to start my own business and will need a Business Bank account. Are there any banks who may offer me something? Or does the business account have to be in my name? Could it be in my Mums name for example? If it was in her name would this then have tax implications for her?

Many thanks in advance for any advice

bengalknights

If your setting up as a sole trader then it would be in your name or you could use your existing account if any.

If your setting up as limited company then try the likes of santander and barclays.

gibboking

I am in the process of setting up an internet based business and will need an account that will give me a merchant number and be able to accept sage pay.

chalkie99

Depends what you mean by "very poor credit rating".

Do you have defaults, CCJ's, etc. or is it more a case of not having had enough history of credit to build a rating?

You will probably struggle to get a merchant account immediately. Is there any reason you cannot start with Paypal?

What type of goods or services will you be selling? This can greatly affect your chances of getting a merchant account.

cleverzman32

Hi guys,
First time poster, long time reader of the forums here!

I have recently desperately been trying to get a business account but with a bad credit record with a lot of high street banks, not had much success. I tried Mycardplus.co.uk and their business account, its not ideal as maximum balance allowed is £15,000 and there is a £29.99 opening fee, but after sending them some documents (proof of ID and address) today I got an email confirming I have been approved with an account number and sort code! Eagerly awaiting to receive my card to see if it really is a functional business account. It doesn't take cheques though, so that could be a problem in the future.

Alternatively I was going to go into Metro Bank tomorrow - I spoke to the Tottenham Court Road branch and explained I would almost certainly fail a basic credit score check. They said they could still help as the in-branch manager at his discretion can authorise opening the account. I explained I didnt want an overdraft, credit card, loan etc. so might still pop in tomorrow and see what happens!

[Deleted User]

I have a "very poor score and raiting", for example I'm refused credit cards and loans.

I do have a lot of financial products with the big banks, such as credit cards and so on.

However I got an account very easily with Lloyds, I class them as my own bank as I bank with Halifax. Was really very easy and free for the first two years - reminds me time to start paying soon! TUT

Crisp_£_note

Hi I am in a similar situation as I have a 'spent' DRO and am still within the 6 year 'zone'.

I did find out a few weeks ago that Natwest offer a no frills accout for businesses with no financial history (eg new start ups) it's called a Foundations business account and can be applied for via appointment by phone or in branch. Info on the Natwest website.

Barclays are quite good and like to help as much as they possibly can as well.

Tmesis_2

Look for the NatWest Foundation Account.

Also, this looks good and has no credit checks, but I have no experience of it and there is a £29.99 annual fee:
http://www.mycashplus.co.uk/business/our-solutions/business-account-alternative.aspx

cleverzman32

Tmesis wrote: »

Look for the NatWest Foundation Account.

Also, this looks good and has no credit checks, but I have no experience of it and there is a £29.99 annual fee:


That's the account I have, if you have customers paying by cheque or draft it will be a problem as there is no mechanism in place to pay them in. And maximum balance allowed on the account is £15,000 which may or may not suit a lot of people's requirements (although it does mention on the website higher balances at their discretion).