Business account for ltd company start up adverse credit. Swift formations?

Prosperous1

Hi.
I'm looking at going Ltd in January. I would like a business account in the business name with no credit facilities just ability to pay mine and my staff (1 apprentice ) wage. A cheque book if poss and a debit card. I have defaults on my credit report no ccjs... I'm confident I'll be turned down for a business current account as I can only have a basic cash card account in my own name.
I have come across a company called swift formations that will incorporate the Ltd and for a fee of 49 quid guarantee a bank account. Is this a blag. Is it likely to be a cash plus or some thing and does anyone have any experience of "guaranteed business accounts
" thanks for any input

paddyrg

I've got 2 business accounts with Lloyds. Neither has any credit facility and is just like you say with a debit card and cheque book. No bank would offer you credit on a business account without personal guarantees and trading history and arrangement fees anyway, so you might want to try asking around and not just assume.

Most business accounts charge a fee, mine are a fiver a month, then maybe extra for cheques, etc. Not all deals are equal, but electronic banking is usually cheaper than cheques and cash processing. My electronic banking is free, cheques 65p after the first 10 or so.

The thing to remember with a limited company is that the year-end accounting is a lot more heavy duty than self-employed, so remember to allow a grand a year or so for that, plus corporation tax payable annually.

Prosperous1

Thanks for that. Yes I'm award of the extra accounting. I already have anot her Ltd Co with 2 rental properties in. So I have a Ltd Co and a self assessment each year. That's why I use an account ant. It may be seen by some as expensive but I can sleep at night and as she's good I belive she more than pays for herself. Will look at the options you've given. Thanks

motorguy

Theres no credit checks done on the directors of a limited company for a standard limited company business account with no overdraft but just a cheque book.

You shouldnt have any issue.

paddyrg

Personally, and I know it's silly and meaningless, I am more reassured to receive a cheque drawn on a major bank than a minor/online one. All being equal, it may be worth looking to them first. It's a pretty poor reason, but subtle perceptions can sometimes be important.

martindow

paddyrg wrote: »

Personally, and I know it's silly and meaningless, I am more reassured to receive a cheque drawn on a major bank than a minor/online one. All being equal, it may be worth looking to them first. It's a pretty poor reason, but subtle perceptions can sometimes be important.

I don't think I am impressed or suspicious of cheques from particular banks. I any case, you don't normally know someone's bank until you get a cheque from them. At that stage, as long as it clears, I wouldn't worry which bank it is. Cheques drawn on any bank are capable of bouncing.