Does anybody know how I can open a business bank account with poor credit rating/score?

[Raphael Onochie-Obayuwana]

Hi I am a new member to UK Business Forum. However I would like to know how I could open a business bank account with a poor credit rating/score for a non profit organisation that I started in 2014. I have been running it through my Barclays Savings Account and to be honest I don't see it has a very productive way. Plus I will need another business account when I open up other businesses. Thank you for your time.

 

[prophet01]

Raphael

Some years ago, prior to forming my limited company consultancy, a sequence of events occurred outside of my control culminating in placing me in the position of having an extremely poor credit rating. Following those extremely hurtful and damaging events I left the country for three years to "lick my wounds" and concentrate on furthering my, already successful, back-up business of over10 years, a Thai restaurant in Thailand.

When I returned home to England to revitalise my professional career activities of over 30 years I was, of course, unable to open a bank account or even obtain a credit card. That's when I came across the world of pre-paid credit cards and the company Cashplus (can't place a link as haven't sufficiently posted). Within a week I had possession of a Cashplus credit card and access to it's associated on-line banking facilities.

When I decided to form my limited company some time later I tried in vain to open a business account but was turned away by every normal bank. It was only then that I found that Cashplus offered a business banking service for those with a low credit rating. I've successfully operated that business account now for three years and continue to do so. There's your option.

Prophet

 

[webgeek]

Or you partner with someone who can get a bank account and then leverage your new successful venture so that you can then open one yourself in the future

 

[Raphael Onochie-Obayuwana]

Thanks Prophet I will look more into CashPlus

 

[prophet01]

You're welcome.
Let us know how you get on.

Prophet

 

[Psl]

NATWEST have an account for businesses that doesn't require the mad, daft credit checks and a charge over you first born child!!!

 

[Paul Kelly ICHYB]

NatWest & RBS have what they call a Foundation Account which is exactly what you need. However, if you have extreme issues, it is possible that you might not be able to get it.

CashPlus does become an option.

 

[RBS]

http://www.cardonebanking.com/business/

 

[Airgunner]

Cardonebanking looks very expensive when you look into them, they charge for everything! Cashplus is supposed to be OK but as has already been said try nationwide for a basic account.

 

[RBS]

But what do you expect with bad credit history? Be real.

 

[Raphael Onochie-Obayuwana]

Thank you all for your response.

 

[prophet01]

After receiving such good advice are you going to let us know how you've decided to proceed and share your experience with others in a similar position who might find it helpful?

 

[Raphael Onochie-Obayuwana]

Thank you Prophet01

I will proceed with CashPlus and definitely share my experience. I am glad I joined this forum I have more clarity.

 

[prophet01]

If you need any input into using Cashplus feel free to PM me as there are some quirks e.g. after using my newly opened business account client payments into the account started being rejected.

After investigation I found that it was because of a default maximum fund limit on the account set at only £10,000. It was quickly resolved simply by requesting and being granted a higher fund limit of £100,000.

 

[OldWelshGuy]

be aware that Cashplus is not protected by the banking scheme. I would advise you to open a savings account with a high street bank (not credit scored) and transfer the money into that.

 

[prophet01]

Thanks OWG, that's something I wasn't aware of. I've just spoken at length with FSA who have confirmed that to be the case.

With this new information I think I'll continue to use the Cashplus business account as it's worked without issue for so long but I'll transfer the majority of the substantial funds held to a banking scheme affiliated high street bank and keep a small operating level of fund in the Cashplus business account.

Prophet

 

[Raphael Onochie-Obayuwana]

Thanks OldWelshGuy

I have done my homework and I still will stick with CashPlus. Thank you for your concern.

 

[Paul Kelly ICHYB]

It isn't protected by the banking scheme but is by the card issuer - Mastercard (so I am told!))