Opening a Business Bank Account with poor credit score

MyAccountantOnline

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Sep 24, 2008
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myaccountantonline.co.uk
can you get a basic business account for a Ltd company?

I have heard that Natwest do a version for a limited company but cant confirm that.
 
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I've seen many suggestions on the forum for Natwest and Santander.

You would have to go into a Natwest branch and apply for a basic bank account.

Few years back when I wanted to get a Business Bank account I had tried Natwest, they needed 3 years of accounts. Lol how can a new company could provide 3 years of accounts. Same story with other banks as well. Somehow managed to get a Bank account with HSBC. Now when this old company is in Winding up process not sure if HSBC will let me me open another busines account.
 
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Spongebob

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Dec 9, 2008
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I had the same problem after my company failure and personal bankruptcy. I set up a new business as a sole trader using the basic Co-op account I opened while bankrupt but when I incorporated again they wouldn't give me a business account.

I applied online with Barclays and was given an appointment to see a manager at my local branch. She opened a business account for me there and then; cheque book and visa card arrived in the post a couple of days later!

This was two years ago - only a year after discharge from bankruptcy. Credit ratings don't get much worse than that...
 
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wizzard

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Oct 7, 2008
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Ive got poor credit and just popped into my local Santander and they gave me a basic account, im currently looking for a 'proper' buisness account and have no idea which bank to approach for fear of it affecting my credit :(

You will only be offered a basic bank account if you have a poor credit rating. Stay with Santander and rebuild your credit history.
 
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D

dragonflies

I had the same problem after my company failure and personal bankruptcy. I set up a new business as a sole trader using the basic Co-op account I opened while bankrupt but when I incorporated again they wouldn't give me a business account.

I applied online with Barclays and was given an appointment to see a manager at my local branch. She opened a business account for me there and then; cheque book and visa card arrived in the post a couple of days later!

This was two years ago - only a year after discharge from bankruptcy. Credit ratings don't get much worse than that...

Many thanks for this! I was wondering who to go with and after just visiting their website, it looks like Barclays is it! :D
 
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As I explained in my other thread, I went to see a Manager at HSBC to open a new account for new company, he went through the usual online form filling and the end the usual story - Computer says no

I've "adverse" stuck on personal credit rating and hence the consequences.

I have personal and business account with them for over 6 years which obviously doesn't count.

Finally decided not to open a new business account and use personal account for business transaction. I know it is going to pain for HMRC and for me as well but for emergency it seems to be the only solution and better off than being humiliated by Banks.

It is shame, I'm not borrowing money from them or asking for overdraft or credit card. Instead I'm bloody putting my own money with them.

What world has come to!

There are countries where they will send managers to your home to open bank account and then they will top up with loads of credit cards with loads of money in it even if you don't ask.

Even this same HSBC, the so called "world's local bank", would send managers to your home to open bank account and send credit cards without you asking for it. If not at home they have execs. roaming on the road to offer free credit card. Opening a bank account is not even worth thinking about, they open it all the time and you can have as many bank accounts as you wish and no question is asked let alone credit rating or similar rubbish.

Credit rating is modern day evil and absolute sickness. If someone is borrowing money the it does make sense to poke into credit rating. But if someone is not borrowing money instead putting his own money into their pocket then checking credit rating doesn't make any sense or does it?

Even name - Credit Rating - is for credit.

May be it's only me who is being too grumpy? :rolleyes:
 
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I had the same problem after my company failure and personal bankruptcy. I set up a new business as a sole trader using the basic Co-op account I opened while bankrupt but when I incorporated again they wouldn't give me a business account.

I applied online with Barclays and was given an appointment to see a manager at my local branch. She opened a business account for me there and then; cheque book and visa card arrived in the post a couple of days later!

This was two years ago - only a year after discharge from bankruptcy. Credit ratings don't get much worse than that...

Spongebob,
May be you were just lucky? They do check personal credit rating and if it is poor or adverse they do reject as I explained in my earlier post.
 
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billie1

Free Member
Nov 3, 2008
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I had the same problem after my company failure and personal bankruptcy. I set up a new business as a sole trader using the basic Co-op account I opened while bankrupt but when I incorporated again they wouldn't give me a business account.

I applied online with Barclays and was given an appointment to see a manager at my local branch. She opened a business account for me there and then; cheque book and visa card arrived in the post a couple of days later!

This was two years ago - only a year after discharge from bankruptcy. Credit ratings don't get much worse than that...

There is a difference between two years ago and now. The banks are getting tougher and impossible to deal with. Don't understand why credit checks is required for a basic account, where no credit is required.
 
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M

Merchant UK

I had the same problem after my company failure and personal bankruptcy. I set up a new business as a sole trader using the basic Co-op account I opened while bankrupt but when I incorporated again they wouldn't give me a business account.

I applied online with Barclays and was given an appointment to see a manager at my local branch. She opened a business account for me there and then; cheque book and visa card arrived in the post a couple of days later!

This was two years ago - only a year after discharge from bankruptcy. Credit ratings don't get much worse than that...

Barclays are pretty Good at the Moment for Business bank Accounts, Even if you have poor credit, they'll open you a Basic Business Account with Chequebook, and visa Dedit card all in the business name, and normally within 10 days ;)

I also find that if your honest with the bank and try and explain why you have poor credit, then when they do the credit check it won't be such a suprise and they'll relate to what you've told them.

If you keep Mum, and say nothing and they check your credit it could go the other way and you could be refused. Tell the truth and you stand a better chance, Banks know that people are having a hard time and they wouldn't expect you to be squeaky clean.

Good Luck :p
 
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Lincs1

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Jul 25, 2010
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I've noticed that a lot of the agents for Ltd company formation are using Barclays to refer customers too. I assume that the agent is receiving commission for this.
There is also an agent offering 'guaranteed' Barclays business accounts as part of their formation package.
I'd assume from this that Barclays must surely be the most willing of all. But then maybe not.
 
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I've noticed that a lot of the agents for Ltd company formation are using Barclays to refer customers too. I assume that the agent is receiving commission for this.
There is also an agent offering 'guaranteed' Barclays business accounts as part of their formation package.
I'd assume from this that Barclays must surely be the most willing of all. But then maybe not.

Yes, got a call from Barclays via the the company agent which I used to register new company. This was after HSBC's refusal. I explained them my situation. They did help any further. So I assume poor credit means you are done.

Barclays are aggressive with their marketing for Business banking.
 
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Lincs1

Free Member
Jul 25, 2010
49
5
East Of Enlgand
Yes, got a call from Barclays via the the company agent which I used to register new company. This was after HSBC's refusal. I explained them my situation. They did help any further. So I assume poor credit means you are done.

Barclays are aggressive with their marketing for Business banking.

I agree with you that a credit rating should be used for credit applications. You'd think that checking that the applicant for the account lives at the stated address and other such details would be enough, then when the customer wishes to upgrade the account over a period of time where access to overdrafts ect are needed then to just do credit checks in those circumstances.

I have a personal joint account with Barclays and Natwest. When I wanted a standard no thrills business account with Natwest I just applied online, gave my joint account details then the next day a representative phoned me to attempt the usual up sell and then it was all done, didn't need to submit any paperwork or visit the local branch. That was a business account as a sole trader though so maybe the process for a Ltd company business would not fit to that procedure.

I wanted to do the same with Barclays but for a Ltd Company business account, again just the no thrills starter account. Before the Company is formed, as part of researching all the ins and outs, I logged on to their website to see if the process would be the same as it was previously for Natwest. I noticed the online form to complete the basics regardless of it being in the name of a Sole trader or Ltd, then discovered that a visit to the branch was essential. Oh I wonder why that might be!? I can just imagine the face to face up selling process in their office. My phone banking with them seems to divert to an Indian call centre, the requests are met very quickly, but then it's a 10-15 fight to politely end the call as they hang on like pitbulls trying to sell a related service for some commission, regardless of its suitability.
 
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M

Mags@Ariotek

My friend was in a similar situation and the RBS (Royal Bank of Scotland) were very helpful. She met with the manager and he sorted a Ltd Company Current Accout, Visa card and a new personal bank account.

Suppose it might just be "who" you speak to!
 
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M

Merchant UK

My friend was in a similar situation and the RBS (Royal Bank of Scotland) were very helpful. She met with the manager and he sorted a Ltd Company Current Accout, Visa card and a new personal bank account.

Suppose it might just be "who" you speak to!

Not only that but if you go the personal route and make an appointment to see someone face to face, you stand a better chance of opening an account as supposed to doing it all online or via mail

Secondly there seems to be as said before a lot of "agents" using Barclays to open a Guaranteed Business Account, all these are are simply basic Bususiness accounts, Do it yourself and save £150 -£200 not only are you paying the "Agents" Barclays are also paying them a commission, so save your ££££'s and do it yourself ;)
 
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barvas11

Free Member
Jun 21, 2011
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Hi,
I have the same problem just because I refused to pay one stupid phone bill to o2 long story.......
I was refused by Lloyds bank the funny thing is that I have £50k in my savings account with them!
And yes you are right! I ask myself the same question. Why do they check your credit if it is just a stupid business bank account. At the end of the day your not taking any mortgages so why stupid credit reports!
There is one thing which made me laugh on this forum...... Lloyd's bank banner on the right saying we help to grow your business :D
 
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M

Merchant UK

Hi,
I have the same problem just because I refused to pay one stupid phone bill to o2 long story.......
I was refused by Lloyds bank the funny thing is that I have £50k in my savings account with them!
And yes you are right! I ask myself the same question. Why do they check your credit if it is just a stupid business bank account. At the end of the day your not taking any mortgages so why stupid credit reports!
There is one thing which made me laugh on this forum...... Lloyd's bank banner on the right saying we help to grow your business :D

With the ways the banks are at the moment its us that should be checking their credit scores :eek:
 
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billie1

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Nov 3, 2008
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I'm wondering whether people can see their local MP about the situation. This would raise awareness of the situation. There is nothing in Company Law which states a LTD company needs a bank account, however using your personal account is not ideal. After all out taxes was used to bail out these banks.
 
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