Multiple Companies

[Anonymouse18]

Good morning!

First of all, apologies if I've posted in the wrong section, this is my first post - admin, please feel free to move if necessary.

I currently run an online retail business as a sole trader and have a business bank account for it. I recently founded a separate limited company which I would like to keep distinct from the sole trader company as it will be for wholesale. The reason for this is that due to the relatively low turnover of the sole trader company, it makes more financial sense to keep it as a sole trader for now. The reason for the limited company is because those 3 letters tend to hold more ground with export customers.

What I want is some banking advice. With my sole trader business I have an overdraft limit of £7k. I will need to open another account for the limited company, no overdraft required, but I'm just curious as to whether my bank are likely to accept that or whether I will end up having to merge the sole trader business into the limited company?

Thanks in advance.

 

[STDFR33]

Two separate legal entities. You will need one bank account for the sole trader business and one for the company. The bank will have no problem with this whatsoever.

 

[Anonymouse18]

Thanks for confirming.

My application just got rejected, I assume due to low credit scoring (I have a large amount of my overdraft for the other business currently tied up in stock I'm waiting to receive). If I am unable to open a business bank account, what are my options? Do I just have to not trade and wait until my score is strong enough to open an account? In the worst case scenario I suppose I could merge the companies and convert my current business bank to the name of the limited company?

 

[STDFR33]

Try someone like Metro bank.

 

[Businessquotes]

Try a different bank

 

[Daugela]

I would say that you really need a business bank account for your limited company, so as others say above, try a different bank.