New business account - Cash plus?

itzybitzy1

I am in the process of setting up an Ebay business so need to register a business account. I have a personal account with them so I know how it works.

To do this I obviously need a paypal account, and also give the details of a credit card, and a bank account that accepts direct debits (I believe). Although I probably wont need a bank account for many transactions (as I can do this through paypal), does it need to be a business account I link my ebay account to? I have various personal accounts but not a business account yet (which is the best thing to do in the long run, I know).

I have a very good to excellent credit rating (only thing letting me down in not owning my own house), but I do have debts and credit cards. I wish to keep my credit rating as high as possible, so I keep searches minimal. I am concerned that if I apply for a business account that accepts direct debits, it will be refused because of my debts, and then affect my credit score (I am paranoid about my credit score).

An alternative is Cashplus. I have phoned them this morning and they say that their 'advanced' prepaid card is fine for Ebay. However, my concern here is that I don';t know whether Cashplus is seen as a card used for those with poor credit ratings, and therefore it will appear on my credit file ...

Any suggestions? What credit checks do banks do for business accounts? Do I actually need a business account - there won't be any cheques etc and there will be enough money in the paypal account to pay fees etc.

Thanks xx

PS - Is there always hurdles at every juncture when setting up a business :eek:

Atidi

itzybitzy1 wrote: »

I am in the process of setting up an Ebay business so need to register a business account. I have a personal account with them so I know how it works.

To do this I obviously need a paypal account, and also give the details of a credit card, and a bank account that accepts direct debits (I believe). Although I probably wont need a bank account for many transactions (as I can do this through paypal), does it need to be a business account I link my ebay account to? I have various personal accounts but not a business account yet (which is the best thing to do in the long run, I know).

I have a very good to excellent credit rating (only thing letting me down in not owning my own house), but I do have debts and credit cards. I wish to keep my credit rating as high as possible, so I keep searches minimal. I am concerned that if I apply for a business account that accepts direct debits, it will be refused because of my debts, and then affect my credit score (I am paranoid about my credit score).

An alternative is Cashplus. I have phoned them this morning and they say that their 'advanced' prepaid card is fine for Ebay. However, my concern here is that I don';t know whether Cashplus is seen as a card used for those with poor credit ratings, and therefore it will appear on my credit file ...

Any suggestions? What credit checks do banks do for business accounts? Do I actually need a business account - there won't be any cheques etc and there will be enough money in the paypal account to pay fees etc.

Thanks xx

PS - Is there always hurdles at every juncture when setting up a business :eek:

Paypal will not insist on a business bank account linked to your business ebay account ... but your bank may object to you using a personal bank account for business purposes, especially if there are an unreasonable amount of transactions for a personal account taking place.

An application for a bank account may involve a credit search, but it is how you handle credit, not the amount of credit you have , that they look at.