Denied Bank Account Application

[daffy_dowden]

Hello,

I'm in the process of setting up an electrical e-tailor. At present we're struggling with several things, one of which is how to find decent suppliers. Large companies won't talk to us unless we have a bank account, so I visited Barclays to set one up. However, after what I thought was a fairly successful meeting with the local small business manager, I have since been told they Barclays does not offer accounts to businesses that import or sell electrical goods, such as games consoles and the like (which we intend to sell)

So my question is Why did we get denied? and how can we get around this? which banks would offer us an account, are there specialist banks?

Thanks in advance,
Richard

[MarkPearson]

I thought it was pretty easy to setup a business bank account.

If you wanted a loan or a business overdraft then yes, i understand them maybe declining you.

You obviously already have a personal bank account, if its with barclays then opening new business account should be even easier.

Im taking for granted that you have a ok / good credit history and have never filed for bankruptcy.

[ink4-u]

goto HSBC i did and had a great success, they ask a few questions. i didnt tell any lies but i didnt tell the whole story. do you understand that you pay for a business bank account. but HSBC will give you this for free for 1 year so no prbs there. if you already have one for that length of time other companies wont hesitate to take you on as long as HSBC have a good record about you

[Jayne]

Lloyds TSB have been great to me..they offer 18 months free banking and business start up advice. I didn't have to go to the bank, the manager came to my house and I had no hassle at all.

When we first started in business Barclays gave us the cold shoulder. They way too picky.

Jayne :D

[daffy_dowden]

Thanks for the help guys.
I'll give another bank a shot. The manager claimed it was due to a "Strategic business level decision" not sure whether that is just a cover for another reason or not?

[clairemackaness]

Barclays are great, they signed me up no problems and I got two years free and free accounting software.

I do have other accounts with them but I'm always in the red and far from a good customer.

Abbey are supposed to be doing good business accounts though at the moment

[JoyDivision]

I hate banks I have problems with all of them. When you say you have to pay for a business bank account what do you mean by that?

Also how easy is it to get business over drafts?

[Dread]

I too dispise banks, RBS once charged me £30 for going negative by £1 (no overdraft). I closed the account because of this and now i cant get a new bank account anywhere else. I dont drive and i dont have a valid passport so i cant proove my identity, which means i cant get a bank account.

Ive sent away for a new passport though so that should help me, but again that cost money!

Sometimes i wish we could go back to trading and bartering!

[FE]

That seems a very strahe decision by Barclays in my opinion as they have a lot of focus on small business at the moment.

Without being rude but have you any CCJ's or previous bad credit? It may be worth doing an experian check on yourself. I say this as i was denied a mortgage 3 years ago (already had two others) and it came back i owed a credit card. On doing an Experian check i found out it related to a card that was cloned and used fraudulanty approx 5 years earlier. The same card even reinbursed me £50 for the trouble but forgot to wipe the slate clean as they were moving call centres. To make it worse it was a Halifax card and i banked with them anyway and had 10 times that in the account.

Anyway the resolved immedietly but i had been unaware until then but teh experian check for £1 resolved all

FE

[daffy_dowden]

How would I do such a check?

I'm a student so I have quite hefty debts, but only in my agreed over draft and nothing on my credit cards.

[JoyDivision]

I have debts as well but then do most students/graduates. However I have a good credit history and I am not over drawn, so I am hoping I will have no problem opening a bank account.

[MinuWeb]

I didn't have to go to the bank, the manager came to my house and I had no hassle at all.

They will do that for the rich folk, but us poor people have to trek through the rain and snow and then wait in endless queues to see someone that as an assistant to an assistant of an assistant to the manager (if we are lucky)

One rule for the rich and one for the poor, shouldn't be allowed really.

Well, it's either that or maybe he likes your buns :lol: :lol: :lol:

[Jayne]

Hi Tony,

Rich..funny joke :lol:

I think they do it for all customers, when we got our first shop, we were really skint and he came out to see us then. You have to go to the bank to put cash in, but everything else can be done over the phone or internet. It's an easy to use bank.

Jayne :D

[Rob]

The question was asked how to do a search on what is registered against you. Here are the contact details of the 3 main Credit Reference Bureaux:

Equifax, PO Box 1140, Bradford, BD1 5US
0870 5143700

CallCredit, Consumer Services Team, PO Box 491, Leeds, LS2 1WX
0870 0601414

Experian, Consumer Help Services, PO Box 8000, Nottingham, NG1 5GX
0870 2416212

Like the others I doubt you would be denied an account on policy grounds especially as you are not borrowing. I also suspect it's a fob off and that you may find something interesting on your credit file.

[visagephoto]

The question was asked how to do a search on what is registered against you. Here are the contact details of the 3 main Credit Reference Bureaux:

Equifax, PO Box 1140, Bradford, BD1 5US
0870 5143700

CallCredit, Consumer Services Team, PO Box 491, Leeds, LS2 1WX
0870 0601414

Experian, Consumer Help Services, PO Box 8000, Nottingham, NG1 5GX
0870 2416212

Another one to check with is "Registry Trust" Tel. 0207 380 0133.

When I applied for a "consumer Credit Licence" I had to check my credit references. My local sherrif court gave me the above details as the main agency for holding details regarding CCJ's.

[fastfences]

How would I do such a check?

I'm a student so I have quite hefty debts, but only in my agreed over draft and nothing on my credit cards.

Hi Daff.

I think the above may be your answer as to why you were denied. Just do the rounds of the banks - try Abbey!
Cheers, Nigel

[Ozzy]

Do a credit check on yourself as mentioned above, that is the most likely reason.

The only bank I am aware of that will still be willing to work with people who have adverse/bad credit ratings is Natwest Direct Business Banking (not a Natwest branch). You can get their contact details on www.natwest.com

They do not work through branches as it is all online and over the phone, but they are more flexible to those who have some negative credit history.