Credit Rating not good enough for a Business Bank Account

CKhalvashi

Ciwan wrote: »

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?

As long as you can show you can support yourself, shouldn't be a problem

paddyrg

By the way, I don't know if you've applied online or in branch, but in person where you already have a relationship, and specifically asking for a basic account they might be more ready to talk than some random 'computer says no' online application.

Ciwan

Thanks Paddyrg. I'll do it in branch.

Ciwan

Update: I've made an appointment with Santander. Any tips on what I should say and shouldn't say?

The business is a Herbal Tea business. We'll be selling on eBay initially, then expanding to other sales channels like Amazon and our own online store.

We expect to sell in the region of 30K a year, maybe a little slow at first till the name gets out.

paddyrg

Pretty much what you said. Keep frank, say you don't want credit, credit cards, or an overdraft, but to build a relationship at this stage. Tell them what the business is, show them any business plans you have, TAKE YOUR CERTIFICATE OF INCORPORATION and any other startup paperwork, maybe your VAT Reg number if you have one. Tell them how you plan to keep your accounts (Excel is fine), basically you just want to not come across as a chancer but as someone who understands that business is business.

Herbal teas - sounds a tricky sector to break, so maybe take some of your marketing blurb with you, leafleture, sample packaging, hey why not bring some sample teas with you to offer to the staff, build some rapport and relationship, or at least some goodwill.

BlueSkyProspero

Hi, I've just come across your post.
Just thought I'd post a response as I found myself in exactly the same position about 4 years ago. I set up a small limited company and just wanted a business bank account for simple transactions. My credit rating which was similar to yours it seems, meant that I was turned down by Co-Operative - who at the time I thought would be ideal, fit with our ethos etc.

Anyway, following a recommendation I tried Metro Bank. They are still quite new and keen to welcome in customers. They're approach is great - open 7 days a week - and their customer service is excellent - you can set up a new account and get your debit card printed and given to you in an hour.

What I found helpful was I printed off 3 credit reports of mine, from Experian, Equifax and Call Credit in advance to discuss with the bank. Experian's was the worst and showed a couple of historical "black marks", but the other two were better for some reason and so I was upfront and highlighted these with my reasons behind the slip up at the time. I also provided a couple of written references of my financial management / reliability etc.

As I was well prepared they did listen to my reasoning and it came back fine. Within an hour I had the new account set up, along with a debit card, online banking and chequebook.

Not sure if they were using another credit reference agency or whether my planning helped, but they must be worth a try for you.

Good luck!! :-)

Ciwan

Thanks BlueSky that is encouraging.

I'll keep you all updated on how it goes

Ciwan

My meeting with Santander was today. The person part of the business team was very friendly and explained everything clearly. Better experience than what I had at Barclays!

Anyways, he said when he submits the application, one of 3 things can happen.

1. Application gets approved
2. Application gets deferred
3. Application gets declined

Mine got deferred, which is what happened at Barclays too. So my guess is I'll be declined again

If what you guys are saying is right about the bad points I had 49 months to 60 months ago, then the only reason I can think of is me being constantly in my overdraft.

I'll just have to continue using my personal business account for now

devon_guy

Natwest do a business bank account for people with credit problems, perhaps try them.

Ciwan

already did, they refused too

I've tried NatWest, Barclays and Santander