Partnership - business bank account

BugglyB

Hello

Have looked for this online but struggling to find the right info.

If we have a business partnership and open a business bank account will credit agencies link our credit history's in the same way it would if we opened a joint personal account together?

Any info appreciated?

[Deleted User]

I don't know the answer.

However we have a Lloyds Business bank account.

We are equal partners in the business and have held the account for about 18 months.

Our credit reports show no link at the moment, we are actually partners (as in living together) as well, we do have a link via our joint personal current account. But as you may well know the credit ref agencies show you clearly what the link is attributed to.

Hope that helps.

paddyrg

Hard to say and probably varies by institution, but be aware the partnership account and indeed partnership does make you jointly and severally liable for partnership debts. In effect being partners does link you financially at least as much as being married! Friends dad's business partner walked out with the whole savings plus clients money and debts, friends dad had to push back his retirement by a decade to sort things out, and he was a lawyer.

[Deleted User]

That's interesting, so it may be a good idea to request both partners signature on all cheques and authorisations, we opted for just the one! But then again, we don't have any money to take lol

paddyrg

assj wrote: »

...But then again, we don't have any money to take lol

Just remember though, if your partner went rogue and borrowed £20k for the partnership (remember you may never see the paperwork, partners can act for the partnership), then did a bunk, you would be liable to repay the whole lot!

It's a very old business structure and probably not ideal for many modern businesses.

Mistral001

paddyrg wrote: »

Friends dad's business partner walked out with the whole savings plus clients money and debts, friends dad had to push back his retirement by a decade to sort things out, and he was a lawyer.

I bet the friend's father does not visit the ex-partner in prison.!

paddyrg

Mistral001 wrote: »

I bet the friend's father does not visit the ex-partner in prison.!

As I recall he vanished overseas, wasn't seen again. Friend's father was unimpressed though for sure. They'd built up the partnership over decades