Business Bank Account - Bad Credit

212

Hi,

I'm looking for a business bank account (Limited Company). I (sole director) have bad credit (recent defaults).

I'm currently using my 3rd personal basic account as a sole business account, just in my name (all transactions through it are business though). I've been told that's 'illegal'. I know it's against the banks T&Cs, but not sure about where I stand with Companies House/HMRC and co? I've been told there's a possibility of them claiming it's a directors loan etc, but if I never 'got at it' other than through PAYE/Dividends etc, then surely (or not!) common sense should prevail and they just realise I'm making the best of a bad situation??

So looking at setting up a full business account in the ltd name... I've heard Natwest & RBS Group offer good basic accounts for those businesses declined for a full account. But both of them are major creditors for me personally, so 1 - I'm assuming they'll tell me to clear off. 2 - in the rare event they didn't, would they have any rights to offset against my personal debt, since I'm a sole director?

HSBC have declined me online. Barclays say they don't know but to go for a application in branch but it'll take an hour. I'm thinking of "My Cash Plus" which is supposed to be guaranteed for £49 a year. I was thinking Santander, but having a pot shot at them will alert them to the fact I'm using my (multiple) personal accounts for business use. Highstreet banks seem to charge over that per year anyway for 'basic' business banking, so once I've played with whatever "intro" and "free" offers I can get at, I'd have to pay anyway....... Just wondering if anyone has used them/are they legit. Or is there a free way at the moment to join one of the big few...

jonesMUFCforever

Who is the company secretary? You cannot set up a company by yourself.

212

Not sure about public, but for a private limited company (unquoted) you don't need a secretary.

Even with a secretary, all the legal obligations (returns etc) remain with the directors (so presumably other small companies don't bother with one - or make it the accountant!).

Aquamania

jonesMUFCforever wrote: »

Who is the company secretary? You cannot set up a company by yourself.

Yes you can
Company secretaries are not required for most small companies nowadays.

Aquamania

212 wrote: »

Hi,

I'm looking for a business bank account (Limited Company). I (sole director) have bad credit (recent defaults).

I'm currently using my 3rd personal basic account as a sole business account, just in my name (all transactions through it are business though). I've been told that's 'illegal'. I know it's against the banks T&Cs, but not sure about where I stand with Companies House/HMRC and co? I've been told there's a possibility of them claiming it's a directors loan etc, but if I never 'got at it' other than through PAYE/Dividends etc, then surely (or not!) common sense should prevail and they just realise I'm making the best of a bad situation??

So looking at setting up a full business account in the ltd name... I've heard Natwest & RBS Group offer good basic accounts for those businesses declined for a full account. But both of them are major creditors for me personally, so 1 - I'm assuming they'll tell me to clear off. 2 - in the rare event they didn't, would they have any rights to offset against my personal debt, since I'm a sole director?

HSBC have declined me online. Barclays say they don't know but to go for a application in branch but it'll take an hour. I'm thinking of "My Cash Plus" which is supposed to be guaranteed for £49 a year. I was thinking Santander, but having a pot shot at them will alert them to the fact I'm using my (multiple) personal accounts for business use. Highstreet banks seem to charge over that per year anyway for 'basic' business banking, so once I've played with whatever "intro" and "free" offers I can get at, I'd have to pay anyway....... Just wondering if anyone has used them/are they legit. Or is there a free way at the moment to join one of the big few...

How much do you earn per hour?

Surely £49 after tax is worth an hour of your time enquiring at Barclays?
Having said that, if I were you I'd be tempted to ask Natwest/RBS first.

pmduk

The Natwest Foundation account is no longer available.

212

Aquamania wrote: »

How much do you earn per hour?

Surely £49 after tax is worth an hour of your time enquiring at Barclays?
Having said that, if I were you I'd be tempted to ask Natwest/RBS first.

True, but on an ongoing basis the £49 account (if it's not dodgy) is cheaper. I've been referred for Santander's account which they say they'll decide on within 48 hours.

pmduk wrote: »

The Natwest Foundation account is no longer available.

Ah ok, thanks.

dr_adidas01

pmduk wrote: »

The Natwest Foundation account is no longer available.

Think natwest would disagree with you on that one.

Unless you mean you can't directly apply for it anymore?

http://imageshack.com/a/img837/4762/un4m.jpg

pmduk

Others have stated on here that it's not available, I googled it without success, but found this item at www.money.co.uk

Either one of the sites is wrong, (perhaps the OP should apply and let us know the outcome), or you can only get the account after a failed application for the Business Current Account.

lolavix

pmduk wrote: »

The Natwest Foundation account is no longer available.

I'd best let our account opening team know then seeing as I've opened 4 in the last week for customers :rotfl:

The system will default to a foundation if credit score says so....no need to apply for one directly

Stephenrw007

I applied for a NatWest Business Account through their Direct Business banking section on the 3rd January and it is only today (13th March) that they tell me my account application has been referred due to my personal credit history.

The average wait time is over 30 minutes to speak to them directly. An absolutely appalling service ([Removed by Forum Team] - Customer Advisor).

I applied for an HSBC business account on Thurs 27th Feb and had account numbers the following Tuesday. They were superb!

I would avoid Natwest. They lose parts of your application, forget to chase things up, and most importantly don't return communications.

Thank you HSBC.

[Removed by Forum Team]