Ltd Company Bank Account - Bad Credit

amw1306

I've searched the forums and found a couple of threads relating to this. Some weren't quite the answer to my questions, and some were several years old and referred to recommendations of accounts that no longer available - so I am posting this question again (apologies).

So, I previously ran a number of small businesses from home as a sole trader. I then sold/closed these businesses, as I wanted to experience working full time and building a career outside of the home (something I had never done before). Unfortunately this didn't work out due to having 4 children and paying more than my wage in childcare, so I am back at home, and starting two new businesses.

I had a £1K overdraft on one of my business accounts, and whilst I was working, I was unable to pay this off as I was left with negative money every month after paying for childcare. I never found the money to pay it all off. The other occurred minor charges over this period of 18 months, but I hadn't realised as I didn't have access to my internet banking for this account. So there were two accounts in arrears. Eventually this resulted in a notification from NatWest, who I have banked with since the age of 11, that they were going to close my personal account, and all other accounts held with them.

I called and arranged a repayment plan which they said was fine. However today I received another notification saying the same thing, as my loan repayment was not processed on the first of this month, however I did pay this a week later. They have advised me that my accounts will not be closed, but that the business collections department will be monitoring my accounts and that I must ensure no further payments are missed, or no accounts go into arrears as they will then take action.

Other than the above, my credit rating is 'fine'. I passed a credit rating for a mortgage a few months ago (didn't progress due to not being able to borrow as much as we required) - but I've obviously made a big boo boo with my bank, and my business accounts, and my loan!!!

I have no CCJ's, just the above defaults. Am I going to be able to get a bank account for my business?

I intended on registering as a limited company today, but this has clearly put a spanner in the works. I'm now too scared to register my company for fear people will not be able to pay me, and I won't be able to pay the freelance team I will be subcontracting to. But the nature of my business (High Value B2B Services) mean I will be unable to operate using my own personal name/bank account... I certainly wouldn't want to pay someone who provided BACS details as their own name.

I have had a few payments made to me already, and these have gone into a paypal account. I am nearing the annual limit whereby they will prevent me from making any payments from the account until it is verified with my bank account. The bank account name has to match the name on my paypal business account - and obviously my personal account does not match.

Can anyone advise of my chances of opening and account, and offer any advice/suggestions on doing so? My families financial survival is depending on my success in running this business (which I know I can do, and do well).

Another question... I am also launching a second business, but will not be registering this as a limited company. I had still hoped to open a bank account for this, obviously as I need to keep this separate from my personal account. Would the bank ever consider changing the name on my existing business account (where I am currently paying off the arrears on my overdraft) - to prevent having to find someone to let me open a business bank account as a self-employed individual?

Sorry it was so long. I'm in panic mode.

Thanks for reading.

CKhalvashi

You may need to book an appointment with Barclays, stating that you don't need any borrowing facilities in the interview.

No bank is going to be 100% on this, however they're one of the better ones for your situation. I don't have any accounts with them, so I can't vouch for this.

CK

HasBeen_2

I was worried I couldn't get a Business Bank Account recently:

I was discharged from bankruptcy over four years ago but hadn't realized I needed to ensure that my credit report showed updated information and began the task of writing to all defaulted accounts with a copy of my discharge certificate asking them to update the accounts to a status of 'settled'. However, these combined details already meant that the NatWest bank had declined me a foundation business account, even after appeal. I was lucky enough to approach a lesser known bank - professionally with my company certificate of incorporation, certificate of discharge, evidence I was making efforts to update my credit report, passport and utility bills, etc - and explain that I merely needed an account to pay into and did not require any finance, credit or loans. My application failed the automatic application but I was able to be interviewed by the manager and was very grateful that common sense prevailed and I was able to open a business account. I did some research online, and for anyone having similar problems I'm including the following links, which you may find useful.



.caterallen.co.uk/reserve-account

metrobankonline.co.uk

.mycashplus.co.uk/business/

icicibank.com/business-banking/

.ubluk.com/business/unb-business-accounts

islamic-bank.com/business-banking

bathbuildingsociety.co.uk

nandp.co.uk

sbiuk.com

ulsterbank.co.uk

ybonline.co.uk/business/

unity.co.uk


bankofbarodauk.com


danskebank.co.uk