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lippyboy
30-08-2004, 01:04 AM
Hi- I have a bad credit history which means no bank will give me a business account- which is causing me problems.

Does any one know how to get round this? I was thinking of setting up a business account overseas to try and get round this? But they will probably still want to do a credit check using a UK credit reference agency such as Experian.

Anyone got a solution? Thanks.

Rachael
30-08-2004, 10:22 AM
have you tried all the banks?
I know natwest do one that is for people with bad credit i think its natwest direct or something

also, abbey national seem to be ok with people with bad credit record.

you may want to try your own bank (who you bank with personally) as they may not run a credit check on you.

adr-technology-ltd
21-06-2008, 08:09 PM
Lippyboy,

I too have had a very similar experience to yourself.

I current bank with Natwest for my Personal stuff. However, they didn't let me open a Business Account with them. Like Rachael mentioned, they do have the equivilent of a Basic bank account for businesses which you might want to try.

I guess it depends alot on if you need financing from them or not.

Personally, I don't want any finance support from my business account, just the account itself.

At this point in time, I'm still struggling to open an account anywhere; so if you have any success, please let me - and the rest of the forum know !! :-P

I hope you manage to get what you need.

Best of luck.

Adam

cre8tive
21-06-2008, 11:29 PM
Hi

I have advised people on similar issues. Its not the end of the world in terms of getting a bank account.

If you need a bank account for a business and you have adverse credit history visit Natwest. You get a cheque book, solo card and paying in book as standard. Its the account thats been set up specificially for people who may not have been able to operate a business account normally. Whats more you get 2 years free banking thrown in for good measure.

Hope this helps.

If you need anything else please dont hesitate to get in touch

jamie

adr-technology-ltd
22-06-2008, 01:27 AM
Jamie,

They wouldn't even let me do that !

cre8tive
22-06-2008, 10:58 AM
Hiya,

When was it that you tried? And where are you based at preesnt?

I bank with Natwest and i will ask my business manager to get in touch with your local branch if you like as there is no credit check with the Foundation Account, which launched this month.

Thanks

J

shamrocker
22-06-2008, 11:38 AM
From my experience of dealing with banks, they will usually judge each situation on its merit.

Do you currently have a personal bank account? What do you need from a business account? Cheque book, overdraft facility, payment card, etc..

Can you show the bank that you have your own funds available to help the business succeed? - otherwise they may not take you seriously. Although you won't necessarily need a lot money to set up in certain kinds of business.

These are just a few questions that came into my head after reading through this thread.

m8internet
22-06-2008, 11:53 AM
Don't apply for too many accounts in a short space of time
If they come back as declined that will adversely affect your credit rating
It is best to stop when three come back as declined within 4 weeks, leave it for 4 weeks then try three different banks

You really only need a business account if you will be receiving cheques or postal orders made payable to your business name

If this is not the case, then an ordinary bank account will do
I would recommend that you only specifically use that for business purposes, and that will make record keeping much easier
If you need to make online and/or credit card payments, then apply to Capital One for their Platinum Card
It is basic, with a starting credit limit of 100, and the interest rate is very high, but once you have been operating it for about 6 months the credit limit increases to 1000, ideal for quick payment processing, just remember to pay off the balance before the 30 days is up!

My first "business" account was with the Alliance & Leicester, as they were the only bank open on a Saturday between noon and 3pm
At the time they didn't actually operate a "business" account, but since I was under 18 they agreed to open a "Treasurers account" until I was 18, which allowed me to lodge cheques in my business name and without any fees or charges

cre8tive
22-06-2008, 01:51 PM
Originally posted by m8internet
You really only need a business account if you will be receiving cheques or postal orders made payable to your business name

Just to clear up, if you are going to be receiving any funding you will need a business account at the time of application, it also helps HMRC

But yeah if you arent looking for funding and just a seperatate place to keep business money then something like a savings account would do.

EDIT: If you are interested in the foundation account from natwest contact:

Rohan Keller
Retail Markets Media relations
0207 672 1926
ronan.kelleher@natwest.com

:)

adr-technology-ltd
22-06-2008, 02:00 PM
Basically, my situation is that I have personally had adverse credit in the past.
I have been trying to get a business bank account sorted, but no-one wants to play ball.

I have a Step / Current account with Natwest, so thought they could help.
I applied for their regular business account, which I was declined.
They told me that they would automatically try for the Basic Type account.
Which was also declined.

I do not owe Natwest any money, and have been a customer of theirs for about 2 yrs.

With regards to what I need. Essentially, I would need to receive cheques in the business name etc.

I do not need a cheque book, overdraft, credit card, or any other type of borrowing.

I am unable to get a credit card in my own name due to the adverse credit history.

It's interesting to see how the banks deal with these kinds of applications.
Naturally, as a LTD company, I believed that it shouldn't matter what the personal circumstances of the directors is.

Adam.

cre8tive
22-06-2008, 02:25 PM
Hi Adam,

It is a bit of a difficult situation but its simply a challenge that can be worked through, i do have faith in that.

If you dont mind me asking, what age are you? As this may limit where can provide help.

Thanks

Jamie

adr-technology-ltd
22-06-2008, 02:32 PM
Jamie,

I'm 26

My business partner is 28.

I would welcome any / all suggestions that you might have.

To be honest, the situation is medium to high priority - as I need an account to really start trading propperly.

Adam.

cre8tive
22-06-2008, 02:37 PM
Hiya

Yeah i know how you feel, i was in the same position. The one thing i was thinking of was possibly Princes Trust but they cap the assistance age to 25, which doesnt help. They can normally back your idea which encourages the bank to help you.

You could possibly try speaking to rohan as per my previous post and just explain your situation.

The foundation account is targeted at business start ups however there is a slight but of leeway on it.

The other bank that is participating in the Foundation programme is RBS :)

adr-technology-ltd
22-06-2008, 02:40 PM
Jamie,

I've sent Ronan an e-mail. He's out of the office until Tuesday, so will hopefully hear back then.

As for Princes Trust; I thought it was 18-30 for the age bracket ? Either way, I've been in touch with them, and they tell me that there is no funding available in my local area at present.

For now, I will have to use a domant personal account of my own, just for deposits etc.

I will try RBS on your recommendation, and will post my findings here.

Thanks for your help, it is very much appreciated !

Adam.

m8internet
22-06-2008, 02:44 PM
If you are being declined for business accounts, then what about this...

Find a relative or a friend, that you trust implicitly
Invite them to become a partner in yoru business

They can then apply for an account, under the companies trading name and as a sole trader
Once approved, leave the account dormant for a few months
They can then update the account from sole trader to partnership, the bank will perform another credit check, but the account already exists
That's how my brother got round it, and I am assigned signee on his account, but I don't take any part of his business expect to make sure that there are no liabilities on my name!

cre8tive
22-06-2008, 02:58 PM
Originally posted by adr-technology-ltd

As for Princes Trust; I thought it was 18-30 for the age bracket ?

Hiya, the basic elegibility for Princes Trust Assistance is:(just incase anyone else needs it)

Do you have a good business idea?
Are you aged 18 to 25 or between 26 to 30 with a disability?
Have you been unable to get hold of all the money you need to start your business or expand your existing business?
Do you need to test market your business idea?

And its my pleasure to help, its always good to try and get business ideas off the ground, its us business men and women who can help improve our economy :)

adr-technology-ltd
22-06-2008, 03:02 PM
Ok, I must have got confused with the Princes Trust stuff... Not to worry.

My local Business Link might be the next place I can badger and harrass for some information.

I'm not convinced by m8internet's suggestion though, surely that would constitute fraud: obtaining services by deception ???

I want to be 100% legal and above board, nop underhand tactics.
I (would like to eventually) run an ethical business.

Ad.

cre8tive
22-06-2008, 03:15 PM
Hiya

The age bracket for Princes Trust is:

18-25 for business start ups or 26-30 for people with disabilities. just incase anyone else reads it, and needs the info.

Yeah trying RBS is a good option :)

happyboi
23-06-2008, 01:23 PM
Originally posted by lippyboy
Hi- I have a bad credit history which means no bank will give me a business account- which is causing me problems.

Does any one know how to get round this? I was thinking of setting up a business account overseas to try and get round this? But they will probably still want to do a credit check using a UK credit reference agency such as Experian.

Anyone got a solution? Thanks.

Hi

I have bad credit too and I have managed to open an account with HSBC and previously with Lloyds TSB. Give them a go

Smile
23-06-2008, 04:44 PM
try Natwest business banking, they have a special account for people with bad credit, its Natwest Direct Business Banking and you even get cheque books and a switch debit card.

I have suggested this to about 6 people all with bad credit and they all go accepted.

adr-technology-ltd
23-06-2008, 04:51 PM
Obviously I'm not being clear about my position.

I have already approached Natwest for their "Foundation Account"

To which I was told NO!

I have a meeting with a Business Manager at Barclay's on Friday - so I will let you all know what the outcome of that may be.

Adam.

96061642
23-06-2008, 06:09 PM
Originally posted by adr-technology-ltd
Obviously I'm not being clear about my position.

I have already approached Natwest for their "Foundation Account"

To which I was told NO!

I have a meeting with a Business Manager at Barclay's on Friday - so I will let you all know what the outcome of that may be.

Adam.

Adam - unfortunately people may sometimes respond to posts without having read the content properly; however, whilst this may be frustrating, I don't believe such a deriding response will do you any favours.

adr-technology-ltd
23-06-2008, 07:00 PM
I think you might have taken it a bit out of context.
It was not meant to be a shout-down, I was merely seeking clarifiction on whether I had made myself clear or not in previous posts.

Either way, if offence was caused; it was not intentional - and for that - I appologise.

Adam.

eatderby
23-06-2008, 07:53 PM
Hi

I have heard that if you have bad credit then the Halifax will let you have a treasurers account. This can be used for business. Apparently you only get a passbook but thats good enough to keep track and pay money in. The bank can then issue cheques for you in your company name as you requestthem.

Hope that helps

Lyndsey
EAT...Derby

Live to Eat!

adr-technology-ltd
23-06-2008, 08:35 PM
Lyndsey,

Thanks for the info. I will add them to my list of places to try.
I have a meeting at Barclays on Friday, so will nip round to Halifax after that.

Adam.

eatderby
23-06-2008, 08:36 PM
Good Luck!

Spodaz
24-06-2008, 09:32 AM
I found HSBC to be very helpful when I opened my business account, and I had no credit rating at the time as I was only 14.

The account was all in my name with no parents signature.

Of course there was no credit facility but I did not need that, so providing you are not asking for a loan or overdraft facilities then chances are the bank will be more willing to open the account.