Starling not as good as led to believe

gaz77

I've just spent a frustrating day applying and failing to open a Starling business account.

My business is fairly straightforward - I plan to buy a property off my parents in 2024, renovate it and rent it out. In the meantime I've got a year and a bit to get my architect to draw up plans and arrange planning permission.

That should have been easy enough. I sent them proof of personal funds that are more than enough to cover the next years expenses. But they kept sending the application back because they wanted mortgage documentation. 3 times I explained that there was no documentation because I don't need to apply for a mortgage for over a year. 3 times it was sent back asking for mortgage documentation. They obviously hadn't read the explanation. They've now cancelled the application because I haven't sent them the documentation that doesn't exist!

I work in financial services. I'm well aware of AML and KYC rules. I've a perfect credit rating, and could have sent them endless amount of documentation proving my identity and sources of funds. Instead, they focus on something that obviously isn't possible.

It's very disappointing. Starling seemed to be the top recommendation from both this site and Which. My experience has been the opposite.

[Deleted User]

They're great - as a donor account for switching. 

boingy

I'm confused as to why you had to get into all that detail just to open a business account. Normally you just open a business account like a normal account - no business plan or forward projections required. Are you wanting to borrow money immediately or something? 

Emmia

I know of several people who have failed to get business accounts with Starling, despite having sucessful businesses, established for many years with positive balances, and a good flow of money in (and no need to borrow)

Unfortunately, it looks like Starling doesn't want your custom, so you'll need to look elsewhere - I've heard positive things about Lloyds business banking from a couple of the Starling 'rejects'.

FFHillbilly

I think they are great, use them for multiple business accounts now. to think I used to pay high street banks for a poorer service just 5 years ago seems a bit strange now!
I've never had a problem like the OP has described, but surely it can be resolved by speaking to a human at Starling?

pridehappy

Have you checked Virgin Money? I’ve heard them to be pretty good for small businesses and have a higher acceptance rate. Plus, should be a lot easier to open too! Many of the same great features with Starling Bank included.

gaz77

boingy said:

I'm confused as to why you had to get into all that detail just to open a business account. Normally you just open a business account like a normal account - no business plan or forward projections required. Are you wanting to borrow money immediately or something? 

No plans to borrow money just now - I can fund all the prep work myself. 
When Starling asked questions about the nature of the business, I answered that I would be buying property - at that point they kept insisting on mortgage docs.

FFHillbilly said:

I've never had a problem like the OP has described, but surely it can be resolved by speaking to a human at Starling?

This is the annoying thing. Each time I explained why there was no mortgage docs, it was delayed for several hours until a human read it. If the first person who read it had turned round and said they can't accept me then fine. I wouldn't have been happy, but at least I wouldn't have wasted all this time. Instead the humans kept asking for docs that I had already explained didn't exist.
I don't see how they get good ratings for customer service when they obviously don't read things properly.

Monzo were the other bank mentioned on the MSE business bank page, so I was going to try them. However, the Virgin Money M account might be worth a shot. I'll do some research and pick one. Thanks