Second dumb quesiton of the week

[confused72]

I have a colleague in the IT sector who needs a bank account for his Limited company, but none of the highstreet banks will touch him as he has a dire credit rating, which he is slowly fixing.

Is there any way to obtain, legally, a guarantted bank account for his business, as he has started trading and has cheques payable to his business name, which he can do nothing with.

We have both seen commercial companies offering such a service, but they charge £169.

[BudgetB]

The only options I've seen are as you've already mentioned, using one of the companies that can get you a bank account, but at a cost.

[confused72]

The only options I've seen are as you've already mentioned, using one of the companies that can get you a bank account, but at a cost.

What I fail to understand is how they can do it, when I cannot, unless they are using some form of accountant referral.

[BudgetB]

Don't know to be honest. Why not look through their sites, get the details of the banks they offer accounts with, and then contact those banks directly and see if they'll offer you direct? Never hurts to ask.

[Geoff T]

How bad is the credit rating?

I'd suggest Santander - if not looking for anything other than a banking facility (at no risk to them), I can't see why they'd say no TBH

[sexymuffin]

The coop bank is his best bet, not sure about ltd co's etc but they have no problem with bankrupts etc. Is it just a low score or CCJ's/Defaults/Bankruptcy?

[Batra Ventures UK Limited]

The coop bank is his best bet, not sure about ltd co's etc but they have no problem with bankrupts etc. Is it just a low score or CCJ's/Defaults/Bankruptcy?

From my knowdelege a bankrupt person cant be a director until discharged.

Defaults dont make a huge problem for a regular ltd bank account. Dont know about CCJ.

Have you tried A&L Commercial Bank.

[Philip Hoyle]

How many banks has he tried?

Is he applying in person or by post/email?

Is he being fully honest at the outset re his bad credit rating?

Are Companies House records properly up to date with shareholdings, director appointment details, etc?

The likes of Barclays, Nat West, HSBC, etc., are very unlikely to give him an account. At one time, Lloyds probably would have done, but after their troubles with the Halifax, they may not be doing it now (though it is worth asking them). I agree with others that the "new breed" of banks is more likely to help, such as Sandtander (Abbey), A&L, Co-Op, etc. Try to make contact in person, i.e. get an appointment at your nearest branch to speak to a "human" rather than relying on online applications etc. Never even try to avoid the issue of the poor credit rating - if you're not 100% honest and upfront, it gives a very poor impression of you and the bank staff will be less likely to stick their neck out to do a little bit more work to help you. Never forget the importance of Co House records agreeing exactly with the details you put on your application forms - even a minor discrepancy such as a type in the address or date of birth will give the computer an excuse to "reject" and a human may not bother to look at why the computer said no.

[adam1985]

a basic account with no credit facilaties, and the fact he has cheques ready to bank shouldnt be a problem for banks like co op or smile the internet bank

[Velocity]

Is Foundation current account from RBS any use? Not sure if the Ltd aspect has any effect?

If you're starting your first business and have no trading history, or if you have a poor credit history, our Foundation Account could be just what your business needs.
It provides straightforward, transaction-based business banking, giving you and your business time to establish a credit and trading record.
There are no borrowing facilities available with a Foundation Account.


Can't post links though sorry.

[stugster]

Has he tried a standard business bank account with Santander/Abbey?