Account for limited company. Do they run CC on director ?

[Carmamir]

As in the topic, do they (banks) run credit check on director when you opening business account for limited company ?

I thought that as it is Limited Company they can't check you out...

 

[elaine@cheapaccounting]

Yes they will as a director with be a signatory on the account

 

[ilclifford72]

As in the topic, do they (banks) run credit check on director when you opening business account for limited company ?

I thought that as it is Limited Company they can't check you out...

Yes and in my experience all Directors will be referenced, but also all major shareholders (typically > 25% shareholding) since the bank consider them to be controlling influencing,

 

[bizloanservices]

To confirm other answers - they will.

I had a call from a Director of a company last week - his company was applying for a merchant card facility but was declined because some time ago he wound up another company. They found this out because of the search against his name ... you can't get away with anything these days.

 

[laguna]

This is a nightmare situation.
As a newly registered limited company we need a business account but bad credit prevents a director from being a signatory for 6 years.

The director in question defaulted on a loan sometime ago but has since settled this and agreed on a £250 discount for early settlement. The 250 still shows up in the equifax report - as such they are unable to clear their name!

The Halifax bank whom it was originally borrowed from (personal loan), past the debt (about 2k) over to a debt management company and between them neither say they can remove the mark against the director - it will remain there for the next 6 years!

bloody ridiculous!
*ankers!

 

[kitchenboy]

You might want to try Barclays, I just opened my ltd co account with them a couple of weeks ago. Very helpful and my credit rating isn't too peachy. Local business manager said before they did credit check "as long as no CCJ's all should be fine". So if it's just a default being registered against them, they should be ok.

Otherwise try Natwest who offer a foundation account for adverse credit. Worst case scenario I think Halifax do a treasury account which a Ltd Co. can open. Just be careful applying for accounts is also recorded on a credit file, could cause problems if too many applications are being made.

 

[laguna]

You might want to try Barclays, I just opened my ltd co account with them a couple of weeks ago. Very helpful and my credit rating isn't too peachy. Local business manager said before they did credit check "as long as no CCJ's all should be fine". So if it's just a default being registered against them, they should be ok.

Otherwise try Natwest who offer a foundation account for adverse credit. Worst case scenario I think Halifax do a treasury account which a Ltd Co. can open. Just be careful applying for accounts is also recorded on a credit file, could cause problems if too many applications are being made.

Thanks, we originally considered Barclays for the 2 year free banking they offer but tried our personal bank first (convenience), I'm also afraid that too many applications may set alarm bells ringing!

Ill have a preliminary chat with them over the phone... maybe sound them out?

thanks for the tip

 

[laguna]

*UPDATE*
I spoke with Barclay's today and had an informal chat over the phone with someone. I explained our situation to a VERY sympathetic listener (a former business advisor too), who understood exactly what our predicament was, she also thought that it was ridiculous that other banks are turning away potential clients for small defaults against them.

We now have an appointment to apply for a loan next Monday with a manager of barclay's, but from what we have discussed over the phone - I think we'll be ok to add him as a signatory.
Fingers crossed x

 

[and180y]

Given the problems that the guys running the banks caused you have to wonder if some of them will ever get a bank account again.

 

[laguna]

A former bank manager asking for a business bank account... now that would be interesting fly on the wall stuff!