Sole trader start up

[beckfordinho]

Hi All,

Just need a bit of advice. I have a friend who is wanting to set up as a sole trader and start as quickly as possible. However in order to start work he needs to get some supplies of material from his supplier. However the supplier is wanting a letter from an accountant? I presume this is in order to open an account or set up credit facilities? Now I will be preparing my friends books, I am a qualified accountant, but I do not work as an accountant and would be doing my friends books in my spare time? Would a letter from myself to the suppliers suffice or would an actual practicing accountants letter be required?

Thanks

 

[elaine@cheapaccounting]

I think this is something to ask the supplier

 

[MyAccountantOnline]

As an aside not sure if you have considered a practising certificate, PI cover and MLR issues - you might want to check with your professional body to see what you must have.

 

[wringle]

My husband is a plumber. We wish to open a business account and take out a small loan to buy a van and have it sign written. I bank with Barclays and he banks with Natwest (never got round to a joint account!)though he also has a Barclaycard. We now wish to get our finances in order and want:

1. Business Account
2. Housekeeping Account
3. £2000 loan.

Does anyone have any pertinent advice please?

 

[maxine]

Hi Wringle

Is your husband trading as a sole trader or is this a limited company? If ltd co then separate bank account needed in the ltd co name. If sole trader then you can operate your bank accounts as you like but obviously keep your accounting records showing business transactions.

For loans, there will also be different options depending on whether ltd or sole trader.

Hope that helps
Max

 

[elaine@cheapaccounting]

I doubt a bank will give a business loan to a new limited co with no trading history.

Hope to be proved wrong though - good luck

 

[MyAccountantOnline]

My husband is a plumber. We wish to open a business account and take out a small loan to buy a van and have it sign written. I bank with Barclays and he banks with Natwest (never got round to a joint account!)though he also has a Barclaycard. We now wish to get our finances in order and want:

1. Business Account
2. Housekeeping Account
3. £2000 loan.

Does anyone have any pertinent advice please?

Hi

I dont have any specific advice about a new bank account - you'll read good and bad about all of the banks and in my opinion they are all much the same, but the experience you get will be very much down to what if any relationship you get to build with your manager.

Dont be insulted if you dont get a loan for your van - I have seen numerous clients over the past few months turned down for bank finance even for small loans where they have been with the bank for years.

Good luck with the new business