Start-up business bank account

pillman_gb

I've recently set up a small consultancy business, with a view that in time I might give up my salaried job and work for the company full time.

Over the past 4-5 years, I have had a less than glowing credit record as a result of ill-health retirement leaving me with large credit card debts which I could not continue to pay. While all are now being gradually repaid with individual agreements, one creditor did attempt to get a CCJ and at first succeeded because the Court did not review the documents I had sent in evidence. The judgement was set aside a few weeks later and no further judgement awarded.

After being turned down by two banks for a business account, I checked my credit record and this showed several Defaults on the credit card accounts (technically accurate, but not reflecting the agreemement and ongoing payments) and the original CCJ. I have since taken steps to remove the CCJ and added a personal statement to explain the full history behind the defaults.

My problem is how or where can I obtain a business account for the company? Without one I can't invoice my client, yet I'm meeting expenses and accountant fees out of my own pocket. Obviously this can't continue, but short of making both my kids responsible for managing the company finances, I don't know where to try next. The company will not need borrowing, overdraft or other loans and for the time being at least, I don't intend to draw a salary. Will this make me even less attractive?

I'd welcome any suggestions of which companies are likely to be sympathetic or any other advice.

Many thanks.

Pillman

ckerrd

Can you not set up a "normal" currnet account and have the money paid into that.
This is what I did. No business account just a new account with my bank soley for the purposes of people paying in money for services.

Mark7799

Are you actually running as a limited company?

pillman_gb

Yes, the company has been fully registered with Companies House, VAT etc. I do not want to complicate my financial position by any suggestion that I am earning and not declaring it for tax etc.

Is it legally permissable to use a bank/building society current account for a business? It sounds shadey to me and again seems to leave me open to accusations of undeclared earnings.

Mark7799

No - you will need a bank account for the company.

Which, if any, banks have you tried so far?

pillman_gb

Thus far Cater Allen (recommended by the accountants) and Abbey.

As I had credit cards with Barclays, Nat West & HSBC, I can't approach them, so there don't seem to be many options left.

I spoke to Alliance & Leicester today and they said I would be refused automatically based on the (inaccurate) credit history, but I could appeal. As that didn't work with Abbey, is there any point in pursuing?