starting a business with personal overdraft

[Lucozade_Lil]

i have a personal bank account with natwest with an agreed overdraft of 2,000. if i was to start up a business using some of this overdraft (+ my savings), but transfering it to another bank (say abbey) would natwest get the hump, in fact am i even allowed to start a business with my personal overdraft? i doubt i'd get away with it anyways becuase ive never dipped into it before and im sure they'd notice if suddenly i go into a big debt. also same question for my credit card. if fact let me just stop the waffle and start again. can i use my personal bank account overdraft and my personal credit card to fund a new business venture. thank you

[Breton]

You certainly can use any of your sources of personal finance (including overdrafts and credit cards) to fund a new business. In fact, there is no other way to do it.
All businesses are started by individuals or groups of individuals putting up capital. These people are then the shareholders. They receive shares in direct proportion to the amount of money that each puts in. It is immaterial where that money comes from.
When you prepare your first set of accounts, the amount of money that you put into the business can be shown in two forms: Share capital and/or Director's loan (assuming that you are also a Director and that you are setting up a limited company).
Your accountant will advise you on all of this, and I strongly recommend that you use one! Make sure that you don't pay too much, though, because very few are worth as much as they think.

[Twenty20]

Yes, you can but, but you may find its not the most economic way of doing it. Personally, I wouldn't fund a business by using credit cards. If you have a viable business proposition talk to your bank about finance.