Turned Down for Business Bank Account with HSBC

[macfanuk]

My current LTD Co account is with HSBC so when looking for a bank account for new LTD Co my first reaction was to apply to HSBC, however, I've just been advised that they have declined the application.

On checking my credit report the only thing I can see is that the council have not yet updated the electoral roll so I am still listed at my old address. On checking the councils website, this won't be updated until 1st July then it's however long it takes for credit reports to update the information. I can only assume that this was the reason the application was declined (even after requesting proof of ID).

So... how do I get a LTD Co bank account whilst my proof of ID has my current address on and the electoral roll still have my old address? I can't wait until mid-July to get a LTD Co account as I need to be able to accept payments off customers.

Any advice would be appreciated.

 

[SwissChris]

Use your current ltd company account to take the payments?

 

[macfanuk]

I can't as they're too completely different companies - I am also in the process of closing down the current company.

 

[SwissChris]

Personal account maybe?

It doesn't really matter what account you run the money though. It's just a place to park the money until your account is sorted..

You can still account for the transaction in the new Ltds accounts.

 

[macfanuk]

I've just applied for a santander account as I have a personal account with them which has the correct address on. If that also gets turned down, I will have to do as suggested and use a personal account or something.

 

[macfanuk]

Has anyone else got any thoughts on this? I have now been asked to provide proof of the nature of business to Santander in the form on an invoice from supplier/health & safety certificate/contract between us and a customer/signed lease agreement - none of which a new company waiting for a bank account is likely to have.

What is the best way to accept payments while waiting for the bank account to be approved?

 

[Jeremiah@RHJ Accountants]

The nature of business letter needs to be signed by an accountant or solicitor one of my clients has sent me the exact same request from Santander this week.

Your accountant can easily do this for you.

All the other information you will not have as you are a new business and it also depends on your trade as you may not even need some of the things you mentioned.

Ask your accountant to mention this in their letter too.

Have your thought about Cater Allen Private bank which is part of the Santander group, however you will not have to complete the ridiculous application for that Santander have sent you.

A link to what they offer below, ask your accountant if they can introduce you and if it may the type of bank account that fits your business.

http://www.rhjaccountants.com/accountant-services/bank-accounts-carter-allen-private-banking.php

They can also open the account in five working days.

Hope this helps

Jeremiah

 

[SwissChris]

I find the recent restrictions on people opening business accounts rather ridiculous.

Unless you are squeaky clean they wont touch you for anything.

Even if all you want is an account with no debt facility. The only debt you can get into is bank debt for daft charges. And they're more than happy to give you credit for that.

It's an issue I think a fuss needs to be made about. It's effectively a computer locking people out of doing business. Nothing positive can aver come from a stance like that.