Which Business bank account for bad credit

iaskquestions

I'm opening up a takeaway with a friend we both have low credit scores due to missed payments in the past, myself being as recently as last year when I couldn't work as much when I had to be on call for a sick family member.

What would be the best bank we could realistically open with? I don't want to start applying to banks and getting a lot of hard searches.

Any help/foresight would be appreciated thank you.

username

Could you not incorporate into a LTD company and run the business under that?

It will provide separation from both your less than ideal financial situations and some protection in that the LTD will be a separate entity on its own to your own finances. How will you be financing your new venture?

It may require more paperwork - I am not a business lawyer or qualified professional, however, the idea just appeared given your financial situations.

iaskquestions

username said:

Could you not incorporate into a LTD company and run the business under that?

It will provide separation from both your less than ideal financial situations and some protection in that the LTD will be a separate entity on its own to your own finances. How will you be financing your new venture?

It may require more paperwork - I am not a business lawyer or qualified professional, however, the idea just appeared given your financial situations.

I think thats what we need thank you!

lr1277

I too am not an expert in running a business.
Jowever on the small business board under Work, benefits & Business there is already a thread of best business account, amongst other topics.
Also from reading that board, I am under the impression you need to have a good personal credit history to open a business bank account.  But you are best off asking on that board.

HobgoblinBT

username said:

Could you not incorporate into a LTD company and run the business under that?

It will provide separation from both your less than ideal financial situations and some protection in that the LTD will be a separate entity on its own to your own finances. How will you be financing your new venture?

It may require more paperwork - I am not a business lawyer or qualified professional, however, the idea just appeared given your financial situations.

Opening a bank account for a limited company involves credit searches on directors and persons of significant control so if the OP has bad credit this is likely to lead to a “Computer says no” response.  

I don’t know if it ever came to anything, but there was talk a few years ago of banks offering a basic business account.

MEM62

HobgoblinBT said:

username said:

Could you not incorporate into a LTD company and run the business under that?

It will provide separation from both your less than ideal financial situations and some protection in that the LTD will be a separate entity on its own to your own finances. How will you be financing your new venture?

It may require more paperwork - I am not a business lawyer or qualified professional, however, the idea just appeared given your financial situations.

Opening a bank account for a limited company involves credit searches on directors and persons of significant control so if the OP has bad credit this is likely to lead to a “Computer says no” response.

Unless the Directors are standing as guarantors for borrowing, these check will be ID checks only.  The credit standing of a LTD company and it's directors are not otherwise linked.