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    • MumOfTwoBoys
    • By MumOfTwoBoys 11th Jan 18, 4:10 PM
    • 4Posts
    • 8Thanks
    Businesses - Which Bank Account for BAD CREDIT? HELP
    • #1
    • 11th Jan 18, 4:10 PM
    Businesses - Which Bank Account for BAD CREDIT? HELP 11th Jan 18 at 4:10 PM
    Hi I need help with opening a Business Bank Account. (ESSAY ALERT - apologies)

    I run a LTD company with a decent turnover and profit for a 1 man band.
    My personal credit history is bad. I opened a secondary personal bank account which I use solely for the running of the company. I've even labelled the account after my business. I am well aware that this can cause legal tax implications even though its solely business and wages and dividends clearly go to my other account etc. The only reason I have done this is due to rejections for business accounts. & I don't need to be told about the potential tax issues, because I KNOW. Even so, I still want to get a business account to be fully legit. I have done so much research but I need help with what to do now.

    I bank with Barclays so started off with applying for a business account with them in 2015 when my company started out. Computer said no.

    I then tried HSBC in July 2017 - computer said no.

    I tried NatWest (to be considered for Foundation Acct) December 2017 got rejected for their business account so enquired about the Foundation one as their website says they auto-consider you for that if they cannot offer you their main account, and the man on the phone when I was chasing this told me that, thats rejected too.

    I have bad credit in terms of defaults. No CCJs, No Bankruptcies. I also am not asking for an overdraft facility. I also am running a company in construction sector so its not one of them dodger sectors that the banks try to steer clear from.

    I have a cheque refund from HMRC for refund on Corporation Tax of £1.7k but I have no account that I can pay it into due to the personal account being in my name.

    I know there are 'no credit check' accounts out there such as Cashplus, CardOne and Acorn, and also Tide. However, most if not all of these do not accept Cheque payments, and also as its a pre-paid MasterCard and not a proper bank they cannot offer me the services that I need to run my business effectively. Not to mention the shocking fees on transactions!! Oh and the trust pilot reviews of 1 star with people saying AVOID and WOULD GIVE 0 STARS IF POSSIBLE...etc.

    I just want normal BASIC bank business account. Can anyone help?
    my profit is around 50-60k a year and yet the banks don't want it. I have nowhere to pay this refund from HMRC so I'm worried ill lose out. I just need to be given a chance to prove myself. I want no credit facilities or anything. just pure basic-ness.

    there are companies online guaranteeing the high street accounts for a fee but they all look too good to be true so I'm taking it as 'they can't be trusted'.

    I am waiting on the outcome from Yorkshire Bank at present but I've lost all hope. I don't want to make so many applications as it will start an auto-rejection process when they see these applications on my credit file. I've been trying to get a business account since 2015 with no luck, if checked out by HMRC I have impeccable record keeping and can show all rejections too if they question the account so they would hopefully not treat it as a DLA and see the intent was not to avoid tax, and simply just to run my company.
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    • anniecave
    • By anniecave 12th Jan 18, 8:50 PM
    • 2,195 Posts
    • 707 Thanks
    • #2
    • 12th Jan 18, 8:50 PM
    • #2
    • 12th Jan 18, 8:50 PM
    Is it really a corporation tax refund?

    According to

    you can request payment by bacs or offset against other taxes or a future corporation tax payment. There are probably other businesses just like yours!

    I don't know what other accounts have better banking facilities. Might be worth re-looking at the different features of the other options.
    Indecision is the key to flexibility.
    • MumOfTwoBoys
    • By MumOfTwoBoys 19th Jan 18, 8:09 PM
    • 4 Posts
    • 8 Thanks
    • #3
    • 19th Jan 18, 8:09 PM
    • #3
    • 19th Jan 18, 8:09 PM
    Well I can!!!8217;t blooming believe it. Got accepted at Yorkshire bank!
    • motorguy
    • By motorguy 19th Jan 18, 9:42 PM
    • 16,771 Posts
    • 9,947 Thanks
    • #4
    • 19th Jan 18, 9:42 PM
    • #4
    • 19th Jan 18, 9:42 PM
    Well I canít blooming believe it. Got accepted at Yorkshire bank!
    Originally posted by MumOfTwoBoys

    Yes there are some banks who will refuse new LTD Co startups but in theory your own personal credit history shouldnt matter as you are merely an employee of the limited company.

    You did the right thing by checking around.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
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