Quick Question: What are the steps to opening a Business Bank account?

[egon]

Hi, I just applied for a business bank account with HSBC and have had "Application Agreed In Principle" after submitting and it said that they will call in a few days to finalise. I want to know what happens from now? From the call do they ask for the relevant copies of ID to be sent in and incorporation information? In addition my company is a limited company, but yet to start trading. Is this of any concern of the bank yet? Thanks for your help.

 

[MyAccountantOnline]

Hi, I just applied for a business bank account with HSBC and have had "Application Agreed In Principle" after submitting and it said that they will call in a few days to finalise. I want to know what happens from now? From the call do they ask for the relevant copies of ID to be sent in and incorporation information? In addition my company is a limited company, but yet to start trading. Is this of any concern of the bank yet? Thanks for your help.

Why not ask the bank? I suspect they are all a little different.

 

[egon]

Good idea, I will! The obvious things seem to get bypassed sometimes. Is a face to face meeting always required with these things? Or is that likely to be specific to the bank/situation? Thanks again

 

[MyAccountantOnline]

Good idea, I will! The obvious things seem to get bypassed sometimes.

Is a face to face meeting always required with these things? Or is that likely to be specific to the bank/situation?

It depends on the bank.


Hope all goes well. Getting a limited company bank account opened can sometimes be quite a long winded process.

 

[egon]

Thanks Nicola

Getting a limited company bank account opened can sometimes be quite a long winded process.

In what sense? ID and business documents I suppose? Apologies for the persistent questions

 

[filtee]

I opened 2 business accounts with lloyds tsb for 2 new ltd companies. They were great and it was sorted quickly.

 

[MyAccountantOnline]

Thanks Nicola

In what sense? ID and business documents I suppose? Apologies for the persistent questions

Just time - I've had quite a few clients tell me it's taken several weeks for the banks to process the application. One had to wait 6 weeks

 

[egon]

Just taken a call, I'm all set up now

 

[kg100]

Banks differ but generally they require government ID (passport, photo driving license) and proof of address (utility bill) for each Director and signatory. They also usually request a copy of the Memorandum and Articles and the certificate of incorporation which are sent to you when you incorporate. A few request a company resolution / minutes of a Director's meeting stating that you want to open an account but this is usually bypassed. Some banks insist that everyone comes in together, others that you can all go in separately, some that you have to be ID'd in person, others will do it by e-mail if you get the document certified by a solicitor. A few take biometric ID (like a passport photo) in branch so your photo is held on their records which is very useful if you have your wallet stolen and you're stranded near a branch.

If the bank ends up rejecting your application on the basis of your credit score then you have 4 options (pasted from another answer on another thread):
1. incorporate the business with a more credit-worthy Director, open an account then change the Director (though the bank can still refuse the new Director as a signatory)
2. set up an account with Cash Plus (beware the deposit limits - you need to set up the account fully to make this worthwhile which requires proof of business adress evidence that's hard to get in the early days - classic chicken and egg situation) which is a temporary solution for some though probably inappropriate for the vast majority
3. apply for an account through Metro Bank who use actual people and not computers to assess your credit worthiness (if you're honest with them about problems you may have had they can often work around it). They are, in my experience, the most likely national (well, London) bank to open a business account for people with poor credit. But all their branches are in London.
4. take a trip up to Airdrie. The Airdrie Savings Bank is the only bank in the country that offers business bank accounts without the need for a credit check, but the catch is, you have to go to Airdrie to sign up for the account (though once you have it you can operate it remotely online), they have no branches in London.

 

[MyAccountantOnline]

Just taken a call, I'm all set up now

That's great news and very quick.

Which bank was that with?

 

[egon]

That's great news and very quick.

Which bank was that with?

HSBC. Very quick indeed!