Business Bank Account

[wanderer1825]

Well I've tried everywhere to get a bank account but keep getting refused. I've got a few defaults from when I was made redundant a while ago, but no CCJs or anything else.
I just want a basic account, no loans, no overdraft, no credit, but I've hit a brick wall.
I've tried Yorkshire bank, A&L, HSBC, Nat West and a few others.
Are there any other banks that it's worth my while trying, or do I have to come up with a cunning plan. (I watched Blackadder last night)

Tony

 

[Gillie]

Try Nat West again. They do have a department that deals with business accounts they offer to people with bad credit history etc, and Im sorry but Im having a blonde moment and cant think of the name they give to that dept .... I really must start taking my tablets again!!

The counter staff at Nat West tend not to know about this dept so you do have to push and make a noise to find out about it .... perhaps when the tabs start working, I will come back and post the name of it!! Doooerr!!

 

[wanderer1825]

Thanks Gill.
I made an appointment at Nat West to see the business account manager. I'm not sure whether he was the business account manager or not, he looked like the tea boy to me.
He filled in the forms and said if I have more than 5 defaults it will automatically get rejected.
I havn't heard from them and he dosn't return my calls.I must be really bad
I get told different things every time I call any bank.

 

[toystoyou]

Hi
I had a few defaults also due to the illness of my daughter a few years before I set up my business. When I applied for a biz account with the HSBC I was turned down because of this. But by then I had built a really good relationship with my business banking manager. So I explained to him why and how I got into credit problems and so long as my father (who is in business with me) became a joint account holder he agreed to go ahead with the business bank account.
So, what I'm trying to say is perhaps you could try to build up a relationship with your business banking manager and see if that'll get you anywhere?
Good luck.
Julie
www.toys-to-you.co.uk
Ethical toys, fairtrade toys, eco friendly toys at affordable prices

 

[indy]

Hi Tony,
I don't have the answer but I know a man that does. I 'll post a question on our members forum and get back to you. Just a thought, have you got a business plan? Banks' love information and projections.

 

[Arhiann]

Check your credit record for a start. Sometimes it's possible to talk to the companies that have placed the defaults and get them removed.

 

[dlinney]

Hi

Drop me a pm, i can put you in touch with a company who guaratee you a bank account. You have to part with some cash, but at least you get an account. You get your money back if they fail to get you an account

 

[dataferret]

First off you need to grab hold of a copy of your credit file from the main credit reference Agencies: Equifax, Experian, Call Credit. Get the basic service for £2 where they send you a copy of the file - you will find it buried deep within their websites. Don't sign up for their expensive credit monitoring services - they are a waste of money. Just £2 per file is all it takes.

Once you have your files you will know why you are being rejected. It could be there is incorrect information on there - in which case you can get it removed. Every time you apply for a Bank Account, a search is done on the file. If there are a lot of searches in a very short period of time, it reduces your credit score. This makes it harder to get credit or an account opened. It does not make any difference if you are not borrowing anything, the process is still the same. The first step is knowing what state your credit files are in. Then you can do something about it.

Defaults have to be removed after 6 years. Even if you clear a debt, it still stays on the file as being defaulted but is marked satisified. Then after 6 years it is removed. If a lender has not been able to contact you about a debt or has not had correspondence or a reply from you about a debt within the 6 years, they have to cancel that debt at the six year point. However, the six years starts all over again if they get a response or communication form you about it. All this is very unfair I know.

Having defaults on your file does not mean you cannot get credit. I recently helped a client get serious credit facilities when his credit file was in a terrible state. First we corrected all incorrect data on the file. Then he got a job which paid a regular salary into his Bank account for 3 months. Then he applied for credit over a 6 month period (mobile phone month 1 etc) and made sure all bills were paid on time. After a year, he could demonstrate good payment records and was able to open a business account, obtain credit facilities and now operates a modestly successful business.

In your specific case it starts with getting a copy of your credit file. IN the short term go to any high street bank and demand they open a basic personal account - something they are obliged to do by law. Then request in writing they will offer you a proper account with facilities within 6 months providing the account is operated properly.

This should get you started. You then have 6 months to prove your case to the bank. Meantime, you can use the basic personal account for the business in the short term whilst you build up your credit status again.

Hope this helps

 

[leejohnston]

We've had a similair sort of problem in the past few months (going from a sole-trader to limited account). I suggest Barclays, they put us in touch with a local business manager who bent over backwards to sort it all out.

The so-called 'Guaranteed' Business accounts that some formation companies offer aren't often what you expect. Often they'll take your money to open a reserve account.

 

[HelenBuckley]

I don't know about Tony (OP) but I found this really helpful dataferret, thank you.

 

[wanderer1825]

Well what do you know!!!
I received a cheque book this morning from Nat West.
Nothing else as yet but it looks like I've got a business account.
Just got to make some money now to put in it.

I don't know why some banks kick you out and others are prepared to take you on.

Many thanks for all your suggestions and replies.

 

[Gillie]

Hey nice to see it does work!!

 

[Medden Website Design]

I am with Abbey - they did it all over the phone and then I just had to sign the forms. They offer free business banking for ever - just a few limits on how many cheques to can pay in etc... great for a start up.

Clare
xx

 

I think alot of it is down to risk. Thing with a basic business account is that I can't see as how it is a risk to the bank. After all if you write a cheque and don't have the money in the account then the bank will just not pay the cheque so there is no risk of losing money.