Could a business account be closed because one director has bad credit?

jeystone

Legally a business account is a separate legal entity no? So if a business account already exists, with 3 directors having their own separate accounts, and say 1 director ends up with a CCJ or goes bankrupt etc, could they shut down the entire account because of this one director? or would they simply revoke his access and the other 2 directors could continue using?

There must be a precedent for this

Stewart_78

I know it's tough to get an account with bad credit. We had to go for a Natwest Foundation account when we started a new company last year. I suspect they could close an account for whatever reason they see fit. It's probably in the T+C's. I would suggest you dig them out and start there. Which bank is it by the way? HSBC?

jeystone

Stewart_78 wrote: »

I know it's tough to get an account with bad credit. We had to go for a Natwest Foundation account when we started a new company last year. I suspect they could close an account for whatever reason they see fit. It's probably in the T+C's. I would suggest you dig them out and start there. Which bank is it by the way? HSBC?

Natwest Foundation account, they accept anyone do they? I already have a business account with rbs, Im just terrified of them closing it one day as all my income comes from there, and I know for a fact I even got declined from a Barclays cash card account

so I need a backup option in place

Stewart_78

Well they took us on and our credit files were in tatters at the time. It is strictly no credit. If you are a penny under, a payment will be returned so there is no room for error. But yes, they sorted us with a company account no problem at all. It's saved us in many ways as we now have a profitable business again.