IVA & Banking for self employed

timetofixit_2

I am in the final stages of setting up an IVA, my IP has suggested opening a new business account before it is finalised as I am with Lloyds and they are no longer IVA friendly, I am considering Barclays - does anyone have opinions on them and how IVA friendly they may / may not be. Thanks.

UpToMyNeckInIt

I'm self-employed in an IVA as well.

I've heard that Barclays and Santander are both OK. CoOp might be a good bet as well, as they offer IVA-friendly personal bank accounts as well.

I set up a business account with HSBC (and a personal account with First Direct), prior to finding out that, like Lloyds they are hostile towards IVA customers. Indeed, my FD account got closed down when they found out about my IVA (5 Months in).

However, because my business account is under the name of my Ltd. Company (which is a separate legal entity to me as an individual), it's been fine. I've even got an associated 'Commercial Card' (Company Credit Card), with a £1,000 credit limit!!! (All OK'd by my IP I hasten to add, before anyone goes on about a £500 credit limit in an IVA etc).

Thus if you are Ltd, rather than being a 'sole trader', it seems to provide a degree of protection and financial separation from your personal financial situation.

To test this, I still kept my old Santander Business account as well (Santander are one of my creditors). I have consistently had business funds into the old account, and Santander have not 'set-off' these against my 'personal' debts.

Hope this helps.

Good luck.

timetofixit_2

Thanks for the info - useful.

Steve.

thinkpositive1

timetofixit wrote: »

I am in the final stages of setting up an IVA, my IP has suggested opening a new business account before it is finalised as I am with Lloyds and they are no longer IVA friendly, I am considering Barclays - does anyone have opinions on them and how IVA friendly they may / may not be. Thanks.

I am in the same boat as you (IVA / self employed) and had similar advice from my accountant and others on here - to try Co-Op and Barclays etc.

I did try and they both said they wouldn't set up a business account for me, as a sole trader, even though I wanted no form of credit facilities.

I asked my own bank, Yorkshire, where I have had my personal banking and their "computer said no" too!

Highly deflated by all this I then tried one more, Nat West and they were more amenable and in principle are up for it but they did a credit check through Equifax and that has knocked things back. I am in the process of getting my Equifax report and NatWest said come back in with all the details of your IVA and "we'll look at it again".

Re: Co-op and Barclays: it may well vary according to personal circumstances but as soon as I mentioned I was on an IVA and wanted a business account they both immediately said "forget it". Co-op are ok with IVAs for personal banking but not if you want your business / trading name to be used.

That said I have been having clients pay me in my own name and hasn't caused a problem yet. For me I think it keeps it a bit more professional having a business account and also helps to keep business finances "separate" form personal.

UpToMyNeckInIt

Hi thinkpositive,

There is a business account run by 'CashPlus' with guaranteed acceptance for the 'unbanked sector' (provided you are on the electoral register).

thinkpositive1

UpToMyNeckInIt wrote: »

Hi thinkpositive,

There is a business account run by 'CashPlus' with guaranteed acceptance for the 'unbanked sector' (provided you are on the electoral register).

For a business account?

UpToMyNeckInIt

thinkpositive1 wrote: »

For a business account?

Yes, that's right - a business account.

Just google 'cashplus business account', and away you go. Fees appear very reasonable as well.

I've got them in mind in case HSBC ever close my business account.

Mind you, I'm not sure if as a 'sole trader' a business account is absolutely required - check with your accountant.

Good luck.

timetofixit_2

'cashplus business account' - seems well worth looking into.