Which banks ok with sole trader accounts if in IVA?

thinkpositive1

I am into my 2nd year of an IVA and trying to find a bank willing to let me open a new business account as a sole trader.

Went to my own bank today, everything going fine in the application process and they said they would not do a credit score check.

But they went off and came back and it was "computer says no". They said my ID check with Experian mean they had to decline me. I asked if this was verifying who I was (they already know me as I have had personal banking with them for 4 years). They trotted out a line which sounded like something off a training course..."the ID serach we did with Experian means we cannot open an account for you". I asked if they checked my credit rating and she was cagey about answering it but it seems like that is taken into the assessment.

I then tried Co-Op who I understand are ok with people wanting a basic avvount (Cash Minder) but not is it's a sole trader account.

Anyone found a bank willing to let people on an IVA or "bad credit" open a business account with a trading name?

FoggyBrain_2

I have heard that Barclays is sympathetic. Which one turned you down ? Sounds like they did a full credit check as an electronic ID check wouldn't have any financial info on it, as far as I am aware.

thinkpositive1

I heard Barclays and Co-Op are ok for new accounts for individuals, will check out Barclays for business.

My bank is Yorkshire Bank. I only have a basic account with them and they know I am in an IVA - seems odd we wasted 45 minutes today to get to the point of that Experian check to be declined when they know what they need to know about my finances I think !!

She stressed it was an ID check but if that shows up poor credit history and they then, in effect, credit score me, I can see why they declined. But they started off saying the account would NOT be credit scored as I was not seekong credit facilities (overdraft loan or credit crad). Odd. Frustrating.

FoggyBrain_2

A couple of sole traders on another forum I frequent have been lucky with Barclays, so I guess they are worth a try.

thinkpositive1

Went to meet Barclays today - they won't open a sole trader account for me. Co-Op won't either.

I give up.

Seems being on an IVA you have no chance of having a business account. I was upfront with Barclays so as to not waste time if we spent an hour filling out forms and then they were to do credit search.

MuffinTops

I don't know if they accept IVA's but Natwest have a specific business account targetted towards those with bad credit. I believe it's called the Foundation account? It's not easy to find on general searches but do a google search for Natwest Foundation Account and you'll see the details there.

Good luck.

thinkpositive1

Hi Muffin Tops

You sure that Nat West one is for businesses?

The Co-Op and Barclays are good for personal accounts for those with bad credit and thought they might be helpful for a sole trader business account but they all do a credit search / check. My own personal bank (Yorkshire) say they now do credit searches if you even just want a savings account - seems all banks are so risk averse.