Business bank accounts for discharged bankrupt

NickInTheNorth

Just a quick post regarding opening a bank account for a new limited company as a discharged bankrupt.

Having had a good read on here and elsewhere it appeared that opening a business account for a limited company with myself as director should be possible, Lloyds were mentioned as a possibility, and Clydesdale seemed OK after talking to them on the phone.

So I went to my local Clydesdale branch as advised by one of their Business Direct Relationship Managers. All I needed he assured me was Photo ID, Certificate of Incorporation and all would be done in 10 to 15 minutes. So I asked at the counter, the advisor went away and came back with a list, I needed photo ID and address ID, (seperate), Articles of Association, and letters from the Companies Solicitor and Accountant! As there is no legal requirement for a limited company to have the latter two leeches I asked why they were needed - FCA says she. So after a rather angry exchange with the so called manager I left, and spoke to Lloyds. It was a branch that is soon going to be a TSB, so no-one in branch actually knows anything, and after they spoke to some central help desk they said it was unlikely that they would open an account as my discharge was only in 2011.

Now lack of a bank account is really a show stopper for a business, so I was less than happy (ask my kids!).

The I remembered cashplus, the pre-paid card company. And yes they offer banking for businesses. No credit check, took 5 minutes to fill in the online application, and my new account is in the process of opening. About the only thing I can't get is a cheque book, but as I don't want one that is no problem. Transactions cost a few pence, but so what.

Why is it that banks in this country who were all technically bankrupt will not do business with people that have the decency to actually declare bankruptcy?

fermi

Good to know.

Sure I read somewhere that Natwest were doing a "basic" business account open to nearly everyone now?

Gazwa

yep Natwest do a foundation business account for discharged bankrupt.. i got one last august with them when i set up a limited company. They give you 2 years free banking, visa debit card, online banking, cheque book etc..

jeystone

NickInTheNorth wrote: »

Just a quick post regarding opening a bank account for a new limited company as a discharged bankrupt.

Having had a good read on here and elsewhere it appeared that opening a business account for a limited company with myself as director should be possible, Lloyds were mentioned as a possibility, and Clydesdale seemed OK after talking to them on the phone.

So I went to my local Clydesdale branch as advised by one of their Business Direct Relationship Managers. All I needed he assured me was Photo ID, Certificate of Incorporation and all would be done in 10 to 15 minutes. So I asked at the counter, the advisor went away and came back with a list, I needed photo ID and address ID, (seperate), Articles of Association, and letters from the Companies Solicitor and Accountant! As there is no legal requirement for a limited company to have the latter two leeches I asked why they were needed - FCA says she. So after a rather angry exchange with the so called manager I left, and spoke to Lloyds. It was a branch that is soon going to be a TSB, so no-one in branch actually knows anything, and after they spoke to some central help desk they said it was unlikely that they would open an account as my discharge was only in 2011.

Now lack of a bank account is really a show stopper for a business, so I was less than happy (ask my kids!).

The I remembered cashplus, the pre-paid card company. And yes they offer banking for businesses. No credit check, took 5 minutes to fill in the online application, and my new account is in the process of opening. About the only thing I can't get is a cheque book, but as I don't want one that is no problem. Transactions cost a few pence, but so what.

Why is it that banks in this country who were all technically bankrupt will not do business with people that have the decency to actually declare bankruptcy?

what are the cashplus charges? I heard some horror stories about frozen accounts too

Action_Jackson

I have a Cash Plus personal card which I have found quite useful. Can be very handy for BRs when no other banking facilities are available as you can setup standing orders, pay bills and have your wages paid in.

Personally though, I would be very wary of storing too much money in those sorts of accounts.

It would be useful to get an update from the OP when they start using the account on a day to day basis.

CKhalvashi

Gazwa wrote: »

yep Natwest do a foundation business account for discharged bankrupt.. i got one last august with them when i set up a limited company. They give you 2 years free banking, visa debit card, online banking, cheque book etc..

This is providing that, pre-BR, you didn't have any debt with them.

Barclays are a bank I've always recommended people to (book an appointment, don't do it online), and HSBC, which is who both I and about 90% of the limited companies I'm a director on deal with have also been happy to open accounts for former bankrupts, in exchange for no borrowing facilities and a letter of recommendation (I'm also a Cllr, so have done several myself).

With business, whilst personal credit rating can be an issue, it isn't an issue as much as with personal accounts, as a business plan is the most valuable asset you have.

CK

natasha2012

NickInTheNorth wrote: »

Just a quick post regarding opening a bank account for a new limited company as a discharged bankrupt.

Having had a good read on here and elsewhere it appeared that opening a business account for a limited company with myself as director should be possible, Lloyds were mentioned as a possibility, and Clydesdale seemed OK after talking to them on the phone.

So I went to my local Clydesdale branch as advised by one of their Business Direct Relationship Managers. All I needed he assured me was Photo ID, Certificate of Incorporation and all would be done in 10 to 15 minutes. So I asked at the counter, the advisor went away and came back with a list, I needed photo ID and address ID, (seperate), Articles of Association, and letters from the Companies Solicitor and Accountant! As there is no legal requirement for a limited company to have the latter two leeches I asked why they were needed - FCA says she. So after a rather angry exchange with the so called manager I left, and spoke to Lloyds. It was a branch that is soon going to be a TSB, so no-one in branch actually knows anything, and after they spoke to some central help desk they said it was unlikely that they would open an account as my discharge was only in 2011.

Now lack of a bank account is really a show stopper for a business, so I was less than happy (ask my kids!).

The I remembered cashplus, the pre-paid card company. And yes they offer banking for businesses. No credit check, took 5 minutes to fill in the online application, and my new account is in the process of opening. About the only thing I can't get is a cheque book, but as I don't want one that is no problem. Transactions cost a few pence, but so what.

Why is it that banks in this country who were all technically bankrupt will not do business with people that have the decency to actually declare bankruptcy?

Hi
The Metro Bank would be a good option, very basic business account, no cheque book, no overdraft, a different kind of banking.

Thanks

Natasha2012

ontrack

I managed to open a Barclays business bank account about 7 months after discharge!

iquit

I have just managed to open a business account with Barclays. I booked an appointment by phone, gave BR history, was advised what paperwork to take in. The appointment went straightforward, the Barclays business account person was very professional, polite, non judgemental, full of advise and tips. My only moan is the account took 3 weeks to be ok'd and opened - but as a former BR I know these are the dues I have to pay - indefinitely. Just grateful things worked out.