Starting a business with a DRO

BigMama60

I dont know if this is the correct thread but here goes.
I have a DRO s does my husband, granted in January 2011. We have recently come into some money and would like to setup a business. A retail shop that is a good viable business and already established. The DRO's were against us personally and we had no business at the time. We are assuming we will need to open a business bank account and have contacted our bank ( Co-operative Bank) but they do not have a basic business account and have advised that this is what we need.
Can anyone advise me the banks that may be willing to take us on as I dont want to visit them all and have credit checks done and they say no, further damaging our credit score. I dont want to go too far with our dream then find no-one will look at us and the dream is shattered.

Notmyrealname

All banks will do credit checks on business accounts. If there's not going to be many transactions, your bank may allow you to use your current account for business use - my parents do this as they only pay in cash once a week. You also stand absolutely zero chance of getting a merchant account on a DRO so you will not be able to take debit or credit cards as payment.

Have you checked with the Official Receiver that they won't want any of this money you've come into? By law you have to inform them of any change of circumstances and this would count as one.

Also are you in a strong enough financial position even with this money? As you can't form a Limited Company you would be sole traders or a partnership and fully liable for all business debts. Retail shops usually have a minimum rental contract period that could be from 6 months to a few years and you would be liable for the rent for that period even if your business folds unless you declared bankrupt.

BigMama60

Thanks for the reply. The money does not have to be repaid after the 12 months moratorium period.
I have called a few banks but they dont know what these DRO's are, even those with departments set up for folk with poor credit history.
We are formulating a business plan and will try and see someone next week or it will simply have to go through our own account.

Notmyrealname

I think the main stumbling block for a shop at least will be the inabillity to process credit and debit card transactions. I would concentrate as much time on working out how you're going to do that as trying to sort out a bank account.

Be realistic with your business plan and DO YOUR RESEARCH especially into the local competition and actual running costs of this shop.

Good luck with it.

BigMama60

Well as an update we have managed to open a bank account so thats one step up the ladder..