Credit Rating not good enough for a Business Bank Account

Ciwan

Hello Friends

I would like a Business Bank account for my company but I've applied twice at two different banks and got refused. I wasn't asking for any credit from the bank or any lending, just wanted to keep my business finances separate from my personal bank account.

What are my options as the director of a small private Ltd? How do I go about getting a business account?

Any help and advice would be greatly appreciated.

Thank You.

CKhalvashi

Santander are throwing accounts at most at the moment. If you could get someone to introduce you to HSBC, this would be another option. There is a way of bypassing it, but I don't know what/how.

Are you looking for borrowing? This could be the cause of the issue.

paddyrg

Limited company? I'm surprised you're not getting traction for a genuinely basic bank account (mine had debit card and cheque book, much as if I was 16 and being my first account!).

What features do you need? To accept cheques? To write cheques? To accept occasional transfers? Debut card? Would one of the prepaid card accounts work for you, maybe not Kalixa itself, but something similar - no cheques, limited monthly throughput, but a way to clear occasional transfers and spend on a card?

Ciwan

Thanks guys.

No I am not asking for any borrowing.

I don't need any features. I just need an account to receive money on, pay others money (sometimes internationally) and hook with PayPal as my business is an online business.

Does asking for a cheque book make it hard to get the account?

CKhalvashi

Ciwan wrote: »

Does asking for a cheque book make it hard to get the account?

It could be an issue.

I do know, however, of those with not so perfect history getting one with Santander without asking, so it's not necesarily a no.

Check the electoral register and your credit files before proceeding further is my advice, before speaking to someone in branch.

paddyrg

This isn't a recommendation, but if you don't want a chequebook how about

http://www.mycashplus.co.uk/business/how-it-works/default.aspx

which is a fancy prepaid card account, really. I'm not sure it's technically a 'bank', but has similar services.

PS, also try Metro Bank, branches in London, they seem to be pretty innovative.

Ciwan

Thanks Guys.

I did take out a Credit Report. For status codes, I have mostly 0's and U's which from research I did are good codes? The only bad codes I can see on my Credit Report are here:



Surely that bad thing I did from 49 to 60 months ago isn't the cause of all my sorrows today?

Shall I try Santander now? Or shall I wait a bit considering I've applied to two banks in the past month?

CKhalvashi

I can't see that being too much of an issue.

Have you tried TSB already? I see that you have products with them, but if you have, as above. The person I know has defaults that are being paid monthly that are more recent than 4 years old.

You get a lot more protection with a bank than with a company like Cashplus, too, such as £75000 deposit protection.

It may be worth leaving it a few months, however if your idea is time critical, a phonecall to discuss should get it through with minimal checks, however applying online with the searches isn't something I'd recommend

Good luck!

Ciwan

Thanks CKhalvashi!

As a follow up I have another question. Does being constantly in your overdraft affect your Credit Rating? Until very recently (I'm talking weeks) I've always been in my overdraft, but I thought that was a good thing for the bank? They get to constantly charge me and make money off me?

Also, is it wise to apply at Santander right now having just been refused by two other banks?

CKhalvashi

Speak to Santander on the phone, as whilst it will require a credit check, I know that there are teams that can manually override it in your situation if it does decline. 3 checks in 3 months is considered a guide for the maximum, so it should be ok, but if you're in a difficult position, state that you haven't opened the other accounts.

Constantly being in the overdraft shows bad financial management, however again, if you've got a good, regular income from the business set up already, should be ok.

Ciwan

CKhalvashi wrote: »

Constantly being in the overdraft shows bad financial management, however again, if you've got a good, regular income from the business set up already, should be ok.

I've always had a regular income, though not from my new business venture, but from my full time job. This Ltd of mine is for business I do on the side. Not my main 09:00 to 17:00 job. Can that be an issue for the banks?