Business back account declined

andymurphy93

I have had various applications for a business bank account declined I have a profitable business with a credit score of 69 on credit safe and 6 on Experian (no idea why so low) no adverse credit on the business but I am 1 year into a personal IVA. 

I need a BBL but can't even apply as i bank with tide 

HELP

MattMattMattUK

Credit scores mean nothing, look at your credit file, any missed payments etc. will be a big issue. As the director of a business having a personal IVA will likely stop you opening a new business bank account until at least the IVA is finished. At the moment most banks are also not opening new business accounts, they have placed a temporary stop on the application process. The likleyhood of getting a BBL now without a bank account and also without the application already being under way is pretty much zero.

If your business is profitable do you really need the BBL and what would you use the BBL for? Depending on the usage other finance options may be available, although probably limited by your IVA. I am presuming when you say your business you mean you own and operate a limited company and are not a sole trader?

MEM62

As suggested, you need to look at any adverse history that your business might have.  Do you have a business account currently?  If not, how are you handling your banking?  The more progressive banks, such as Metro, are more open than most and might be worth trying.  

Malkytheheed

I am also very much of the "ignore your score" brigade. That said.... if your score is literally 6! then something is far wrong with your credit report. Check the data in all three. Credit Karma, Clearscore and MSE Credit Club. 

MattMattMattUK

Business credit scores are notoriously unreliable, my business had a "Do not offer credit" from the UK's main business credit rating service when I had a balance sheet £280k positive, zero debt and obviously profitable from accounts, after three years that changed to a maximum recommended credit of £2k with retained profit in the business and cash in the bank floating between £250k and £300k. I do not subscribe to the service (one of my suppliers does), they send me mine when it updates, as of June this year my recommended credit limit rose to £45k (from £2k), despite having a lower net on the balance sheet and making far less money. Business credit rating makes no sense at the best of times, CCJs and even insolvency has such a long lead time before becoming public knowledge that business credit checking is worth very little, one pretty much has to go on gut feeling, but I do not think the banks actually use the credit rating companies for business as they are almost worse than useless.