Business Bank Meeting

[LPS 4D]

Hi all, I have a bank meeting in the morning at Llyods TSB and was hoping I could get a little bit of advice on my planned approach to the meeting hopefully if I am making any mistakes or wrong assumptions then I would appreciate your honest advice.

Important Notes:

- I have bad credit from debts which are now paid off but are defaulted on my file and I know I will fail any credit score until 2013
- I do not want any credit facility just a business bank a/c to pay in my cheques

The Business:

Internet/Home based business providing printing cartridges to local businesses
Starting Capital £20,000
Projected 12 month turnover £200,000
Projected 12 month profit £20,000

The Meeting:

I am going to be honest from the outset of the meeting and explain that I do not wish to undergo a credit score as I am confident that it will fail but I believe I have a sound business plan which simply requires a facility for me to accept cheque payments from my customers and hopefully they can help me.

The business itself is something which I have past experience in as a former business accounts manager for a large retail company outlet and after now being free from contractual agreements I am ready to start out on my own and have verbal assurances that many of my contacts/sales leads will follow me providing I continue to provide the service which they currently receive, at a better price of course.

I have a large database of both suppliers and buyers and genuinely believe that providing I continue to work hard as I have always done then the business will grow rapidly in the coming months and years.

I guess my main questions are.....

1 - Will I be able to open an account without a credit score
2 - If I fail a credit score will they still be able to help me

I should point out that I plan to go into the meeting full of confidence and not desperate for an account but also I have every intention of not undergoing a credit score, instead I hope to sell the business plan/concept to the bank manager and leave the ball in their court and ask them to contact me early next week if they decide they can help me, is this a tactic which may succeed or am I missing something?

Disclaimer

Sorry for any naivity in the above text I am starting out in business and will make many mistakes as I am sure we all do so please offer me any advice you think will help both positive or negative, thank you!

 

[CraigieDD]

Hi there,

Surprised no-one has replied to this yet.

Are you starting up a limited company?

If you get knocked back by this bank, try another until you get an account.

With that start up capital, there doesn't seem to be a great risk to the bank.

Give us a shout if you need any help with online marketing or a website.

Cheers,
Craig

 

[LPS 4D]

Hi Craig, thanks yes the company will be a limited company!

 

Hi LPS

You might be over-engineeing the situation slightly.

A telephone conversation with the manager you are meeting should ellicit whether they will take you on or not. You can safely assume that he/she will have no discretion around bank rules.

As you are looking for credit-only there are numerous other threads which will guide you to the best bank for your circumstances.

Save your meeting time for people who can add value to your business!

 

[CraigieDD]

I really don't see a problem then.

I'd miss out the bit at the start, you can't hide your credit history anyway, so why make a big deal out of it?

I'd take the stance of you've got 20K you want to put into a business that you have vast experience in and you need a business banking account for your limited company.

It's not as if you're asking for credit facilities. I didn't even have a business plan when I got my first business account. It was all done in half an hour.

Best of luck and let us know how you get on.

Cheers,

 

[LPS 4D]

Hi, I have the meeting booked now so will attend to gather as much information as possible from the bank without undergoing a credit score, however as stated I honestly need nothing from the bank other than a business account in the business name so that I can receive payment from my customers, I do not need any credit facility in any way.

 

[Spapro]

I think you sound like you know what your doing, preparing well for the meeting and that should come across.

We started up last January with a similar amount to invest (ie to live on while the business got going )- we took our building society books along which the bank copied. We also took our business plan (simple spreadsheet showing projected Turnover/Gross Profit/Costs/Net Profit by month). I too was embarking on something I had good experience in.

We didn't have the credit rating issues you mention but as others have stated the fact you aren't asking for credit should help.

We got an account with our local Natwest, Streamline Merchant Accounts organised via the FSB (free setup and discounted handling rates). There was less admin involved with the streamline setup as we had an account with Natwest as a lot of the checking etc had been done.

Anyway, sounds like your thinking along the right lines with your professional preparation - good look with your meeting.

 

[longleaf1]

If you don't have any luck with Lloyds try Natwest Business Direct Banking. There foundation account is specifically designed for people with bad credit. They put you through an application for there normal current account and if that fails because of credit or whatever they automatically give you a foundation account.

There a bit rusty like most banks and don't expect it done quickly but at least you will get an account in the end.

http://www.natwest.com/business/prod...t-account.ashx

I had a similar sort of predicament as you not so long ago.

 

[Naughty Vend]

Every bank now performs a credit score but some are more flexible than others, like most SME owners it is fairly normal to have bad debt upon your file and remember many business bank managers are one of two types (a) bank employees whom worked their way up or (b) failed business owners whom now advise others.

I fall into same area as many SME owners in that my credit is not 'perfect' and having had bad experiences in the past no longer have any borrowings other than a car hire contract through the business and a low limit on a personal credit card which is at zero, in actual fact and whilst my credit file has nothing adverse upon it this gives me a poor credit rating personally... Indeed when you have no borrowings the lender can not guage how good you are at managing your debts - remember your satisfied debts / defaults clear after six years in Scotland and seven years in England & Wales. You'll find therefore that a standard credit check will fail you based upon the information you've given in these forums, what I can tell you is that HSBC will probably offer you a facility so long as you can verify your identity and will tell you up-front that they will not lend to you in any shape or form for a period of twelve months. You only get this by phone because the online system doesn't have any discretion and I also understand from 'a source' that HSBC use that new voice analysis software to see if you are telling porkies.

Call them up, they are open right now and see if they offer you an account then you can walk into TSB tomorrow with either your confidence badge on your sleeve or cap in your hand. Good luck and remember there's only one letter out of place in the word banker.

 

[Vaheed Akhtar]

Hi,

I've been in business for 4 years now and even with a sound set of accounts behind me, I feel like I'm nutting a brick wall if I want to borrow anything. Even short overdraft increases are a nightmare, considering I bank allot of cash with them every week/month. (I'm with Lloyds)

I'm not one for putting a damper on anything, but I think you will be extremely lucky to get anything out of lloyds, considering you have no great deal of trading history. It's like getting blood out of a stone at the moment. Best of luck to you though and let us know how you get on.