Business Bank Account with Bad Credit - Got Refused - Is this Now an Option?

[jonnyfiasco]

Hi

Just got refused by Natwest for a business bank account (poor credit on my part). No use me whinging about it, but I wondered is if this is a possible solution.

1. Transfer the 1 share to my father (great credit) which now means he owns 100% of the company.
2. Appoint him as a director
3. Resign as a director.
4. Apply for a bank account and just put myself as a signatory

Is this a possible solution - I see no reason why it wouldnt be. Obviously I wouldnt want him to be affected, just wondering any others thoughts on this?

Thanks

 

[NickD]

Hi,

I am not sure why they would refuse you a bank account. The only thing they could refuse to give you is an overdraft facility.

If you intend to keep the account in credit, there should be no issue at all.

Or, am I missing the point here.......?

 

[matt5791]

If you have any sort of poor credit history, they will refuse you a bank account. And it doesn't need to be a court judgement - a default or even poor payment records will also be a possible cause.

You idea of the 1 share could work, but I would approach a different bank.

 

[jonnyfiasco]

Thanks for the replies.

Matt is indeed correct - Natwest refused me their Foundation account which is specific for startups or bad credit.

Do you think there are any complications for my father on his credit? I doubt it, but you never know.

 

[jonnyfiasco]

I mean to say - if this was accepted - at some stage could I be put on as sole signatory and remove my father, or would they need to credit check me.

Ive got no concern about him being authorised on the account, just thought I would ask.

 

[matt5791]

In my experience they do not credit check new signatories once the account is open. They will, legally, need to ID you for money laundering regulations, for which they normally ask for two forms of ID, if you are becoming a share holder and signatory. I would refrain from removing your father as a share holder at the same time as you become one as this might trigger a credit search and a refusal to continur to offer banking facilities.

If your father is to open the account for his business then they will credit search him with one of the credit agencies, so this will leave a "footprint" on his file, but that's no big deal - you just dont want too many foot prints.