Arghhhhhh I want a basic, no frills business account

[Chunkford]

I'm seriously losing the will to live.

Why the hell is it so god dam hard to open a basic business account in a limited company's name when you don't want ****** credit facilities!

I have had issues with a past business (6/7 years ago) which resulted in myself going bankrupt, it happens. But I've just started a new limited business and I have money coming in that I need to place in an account. Fast.

Every bank I've gone to, the computer says no.

Even Natwest, who specialises in such accounts said No today.
Apparently my "credit check is fine" but it seems because I was banking with them when I went bankrupt 6/7 year ago I have some form of 'personal' black mark against my name, even tho I've been banking with them personally for the last 5/6 years and can see what I'm like.

why oh why! This whole banking system is flawed and is really starting to p*ss me off. I shouldn't have to be fighting to open an account that wont put them in any risky position what so ever. I have better things to do with my time.

Anyway, rant over and I feel a little bit better now.

What I want to ask is, does anyone know of any other way I can open a business acount in my limited company's name?

I have stumbled across cashplus for business and looks promising, but I thought I would put the question out there just in case someone knows of another router I could go down.

Thanks for you time reading me rant and any help you can offer me

 

[OldWelshGuy]

did you ask Nat West for their foundation account? http://www.natwest.com/business/products/business-current-accounts/foundation-current-account.ashx Sorry if you have done.

I have spoken to various people about this as it really is killing business. So many people are just unable to get a bank account and as a result trade. The government should force the banks they won to have a basic bank account that has basic services.

 

[Tom McClelland]

The situation when opening a company bank account is bizarre. When I wanted to open 12Pay's account a few years ago I had to go through a giant folderol of business plan and budgets and forecasts (3 years of cashflow, no less!), despite the fact that I made it totally clear from the start that I didn't want to borrow a single penny from them. I just wanted somewhere to deposit takings. It was as if they weren't capable of switching off the creditworthiness and business plan checking until you actually ask for a loan or overdraft. If you just want a current account without overdraft or loan why do they need all this belt and braces?

 

[SuffolkDesigns]

I had huge problems when I moved back to the UK, as I had no credit history, which apparently is just below people with a really bad history on the scale the banks use.

RBS were helpful and the only ones willing to set me up a personal & business account with cheque books & debit cards.

 

[philharrison]

I had the same issue recently opening a company account. Went through several banks backwards and forwards over 6 weeks then gave up and went into Metrobank. They opened the account in around an hour and gave me the cards on the sport. Definitely a refreshing change to the other banks.

 

[Chunkford]

did you ask Nat West for their foundation account? http://www.natwest.com/business/products/business-current-accounts/foundation-current-account.ashx Sorry if you have done.

I have spoken to various people about this as it really is killing business. So many people are just unable to get a bank account and as a result trade. The government should force the banks they won to have a basic bank account that has basic services.

Yea that was the account I applied for but I got the impression I was personally being black marked because of my previous business account with them 5/6 years back when things went belly up.
The usual data protection malarkey was being spouted so couldn't get a definite answer.

This was after giving them my life story from leaving school till now! and my exact business activities down to who's buying the coffee. (that was a bit of an exaggeration)

It just amazes me when I want... sorry need and business account in the limited company's name so I can just deposit money and pay my bills, with no credit facilities what so ever, that I have to have a credit check!?
Doesn't make sense!

 

[Faevilangel]

I have the most basic with HSBC, no cash transactions and only 5 cheques a month but no monthly fee

 

[Chunkford]

HSBC = computer says NO

I have one more bank to approach (Barclays) but wont know until middle of MARCH!!! if I can or not.
Doesn't help me though, I need to trade grrrrrrrrrrr

 

[OldWelshGuy]

Grab the cashplus account and then move from it if you get a bank account. Downside is they have deposit limits, which then places you in the ironic situation of walking into a bank with £10,000 wanting to open a bank account with no credit facilities, only to be refused as you are a bad credit risk.

WHY can't the government do something about this?

 

[Paul_Rosser]

I have stumbled across cashplus for business and looks promising, but I thought I would put the question out there just in case someone knows of another router I could go down.

Thanks for you time reading me rant and any help you can offer me

Cashplus looks great until you actually look into it a bit further, basically they give you a prepaid credit card which you can add funds to (or clients can) via bank transfer.

However to start with your maximum limit you can have on the card is £1000 and once you sent them some paperwork it goes up to £4000. Still only useful for really small companies.

There is actually no law saying you have to open a seperate account for a limited company (although it is really good practice), so if you could find a bank who don't mind you putting business transactions through a personal account then set one of those up instead.

 

[Faevilangel]

Only other option is an online account such as egg etc

 

[Ola1]

Consider opening a deposit account with a building society, if they say yes, over time you might win their trust and upgrade to a checking account

 

[Chunkford]

Thanks guys, it really is a joke though.

I want a basic business account, I have cash in the petty cash tin, I need more stock and I don't really want to use my personal account again, and the website attached to my personal paypal account is starting to pop up on google for some really good terms.

Trying to untangle this mess is hassle I don't want and time better spent elsewhere.

Starting to think I need re look at my credit file also as I've 100% had no issues since I went bankrupt 5/6 years ago. I've had no need for credit, it's been great!
But this is starting to take the biscuit now.

Need to go for a Friday afternoon pint and calm down.
So so frustrating. Being a freelancer is so much easier.

 

[kevin.doran]

Had a client in the same boat and I think he ended up with the Cashplus account too again because of historic problems with NatWest.

If my memory serves me right, banks only require two directors to apply/sign - I could be wrong. If I'm not though, have you got two credit worthy ppl you trust who could join you as directors and open the account on your behalf for the time being? Parents/family perhaps?

Not ideal by a long shot but it would potentially get the ball rolling.

 

[Chunkford]

Too many hoops and quite frankly why?

It just a bank account with no credit facilities. For them it's nothing to lose and everything to gain.

I feel like a yob who has been banned from the pubs.

It's bizarre and in a very different world to the rest of us.

 

[kevin.doran]

Hey I fully appreciate that but if it helps the cause surely it's worth considering?

Sometimes I feel it's a case of swallowing and playing the system somewhat as best you can.

 

[Chunkford]

Yea I know, just hot headed ATM

Where's the people's bank when you need it... oh yea, it got gobbled up by Lloyds

 

[CKG]

Barclays will more than likely play ball.

My personal credit was dragged through hell and back whenever it was the banks and building industry last collapsed (CCJs, bankruptcy - the works!) and they were more than willing to do business.

I even secured a big juicy factoring facility at a great rate with no tie ins.

That said I'am financially sound these days but none of my recent good fortune was disclosed when I applied.

It was only the bad history that came up in searches and nothing was said about it.

The other high street banks wanted reams and reams of supporting documentation or just gave a flat NO!

 

[kg100]

If you've already been turned down then whatever you do, do NOT just approach other banks as your chances of being successful diminish with every application. Instead, approach the Airdrie Savings Bank - they are a small bank and they offer a business account without a credit check - the only bank in the UK that does it other than Cashplus and as has been said, Cashplus is extremely limiting to say the least.

The one catch with the Airdrie Savings Bank is that you have to open the account in person in Airdrie (for ID purposes) but look on their website and contact the business manager to ensure all's sorted as far as possible in advance. You won't get a debit card without a credit check but you will get online banking.

I do wish this answer to one of the most common questions on these boards could be pinned somehow!

 

[Karimbo]

Hi guys

Is this a common issue?

I'm starting my first ltd company - been freelancing for a while, I have a decent credit record. have taken out personal loans in the past and have a few credit card accounts open which show regular repayments. Would I be able to get a business account open?

Things seem to have taken a really bad dive these days, you can't even rent a house without getting your parents to garantee your rent. Even at age 29. What is the world coming to?

I thought this would be the least of my worries - but now I'm having to hedge my bets and apply for a business account with numerous banks just to get the go ahead.

 

[Merchant UK]

Hi guys

Is this a common issue?

I'm starting my first ltd company - been freelancing for a while, I have a decent credit record. have taken out personal loans in the past and have a few credit card accounts open which show regular repayments. Would I be able to get a business account open?

Things seem to have taken a really bad dive these days, you can't even rent a house without getting your parents to garantee your rent. Even at age 29. What is the world coming to?

I thought this would be the least of my worries - but now I'm having to hedge my bets and apply for a business account with numerous banks just to get the go ahead.

I don't think theres any hard and fast rules, i think they look at each on based on individual merits. I heard barclays is probably the best one to go to first. They will open you a basic bank account if your ID and addresses check out ok

 

[Spongebob]

Barclays are the only main bank who will open business accounts for companies owned by those with credit records blemished by bankruptcy.

Apply online and you should get approval straight away.

I agree entirely with your sentiments about the banks putting obstacles in the way of enterprise. The whole point of bankruptcy is to allow people a clean slate with which to start again. The economy relies upon such entrepreneurs.

 

[kg100]

Hi guys

Is this a common issue?

I'm starting my first ltd company - been freelancing for a while, I have a decent credit record. have taken out personal loans in the past and have a few credit card accounts open which show regular repayments. Would I be able to get a business account open?

Things seem to have taken a really bad dive these days, you can't even rent a house without getting your parents to garantee your rent. Even at age 29. What is the world coming to?

I thought this would be the least of my worries - but now I'm having to hedge my bets and apply for a business account with numerous banks just to get the go ahead.

It is a common issue but judging from what you said about your credit history it may be ok for you.

One way to make it an issue for you though is to put in numerous simultaneous applications for different bank accounts! Just apply for one, from what you've said you should be accepted, but if not you won't suddenly find it extremely difficult to apply for another.

 

[Chunkford]

I finally got one with Barclays in the end.

She did all the back ground checks and said it was perfect, albeit I wasn't asking for any credit facilities so I don't think they were too deep.

What I think has happened is Natwest Business who I went to first, and who I was banking with I went bankrupt 5/6 years ago have personally blacklisted me. So in essence it's like being personally barred from my local boozer.... for life.

Thankfully it's a free market and there are other options to turn too else I would be buggered!

 

[Karimbo]

great news I got the business account.

I was a bit nervous - thinking that I may have to sell myself somehow because it's my first company or something.

Credit check went through plain sailing, I also took out a personal loan a while back on behalf of my brother who used it for downpayment. I guess that came in really handy as it looked good on my credit score.