In personal debt and business account

smallandcute

Hi all,

So I'm sure a few of you have seen my other post in debt free wannabe about the amount of debt I am in.

Anyway I'm starting my business to bring in extra income and need a business account. I have opened a lloyds basic account just now for personal use. I have debt with Santander
, Barclays and natwest. I know nationwide allows basic business transactions on their current account so will apply for one of those if needs be but could I still open the Santander start up business account before I switch to lloyds or is that a big no no? Also any other suggestions would be great, ideally I don't want to be paying for a cash plus etc though.

Thanks

ProudDad

It's a hard one to gage it depends on quite a few factors as often when a business account is opened the bank look at the merit of the business as to whether they want to open the account or not. Most banks do frown upon use of personal accounts for business transactions as its a chargeable service though the main thing for you is keeping the business transactions seperate from your personal account as it makes life easier for tax purposes and if you ever want to show business turnover, profit or your drawings for credit applications.

TheTracker

ProudDad wrote: »

It's a hard one to gage it depends on quite a few factors as often when a business account is opened the bank look at the merit of the business as to whether they want to open the account or not.

And how would they do that? When opening business accounts I generally provide the company name, trading sector, director details, address, and an estimate of turnover. How they'd determine the merit of the business from that information is a mind bender. They might say no thanks to some sectors/activities (eg gambling, bitcoin) but otherwise the sectors are very broad. I've occasionally had a telephone call that asks a little more about the nature of business but I've just told them its commercially sensitive and restated the sector. I've never been refused a business account.

ProudDad

TheTracker wrote: »

And how would they do that? When opening business accounts I generally provide the company name, trading sector, director details, address, and an estimate of turnover. How they'd determine the merit of the business from that information is a mind bender. They might say no thanks to some sectors/activities (eg gambling, bitcoin) but otherwise the sectors are very broad. I've occasionally had a telephone call that asks a little more about the nature of business but I've just told them its commercially sensitive and restated the sector. I've never been refused a business account.

Well for example they will ask for the nature of the business (it's a mandatory requirement due to money laundering regulations) and also the sector.. They also ask a lot more questions about the set up of their business as if it's not within the banks appetite they will refuse it and you have named a few sectors which are definite nos for most.. Basically the most important thing for the person posting this is that the business itself is a lot more important than the person running it as to whether it the account will be refused.