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Business Bank Accounts
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Are there any banks who will open a basic nusiness account for someone who has a poor personal credit history? I have a history of late payments and have had some accounts passed for debt recovery in the past, which are now settled. I have just been made redundant and have set up my own limited company - myself and my partner are both directors of this company. I tried to open a basic business account with Bank of Scotland (they are part of HBOS, who had just made me redundant). They turned down my application for a basic business account even though I required no credit facilities whatsoever. All I need is a basic account to deposit my income which will mainly be paid by BACS anyway. An Electron card would be an advantage but not essential. I have read on the internet that companies are willing to assist you to get a business account for a fee. I dont think I should have to resort to those measures but dont want to keep applying to banks and being turned down. I expect to have an annual turnover in excess of �70k and my business has no adverse credit as it is newly formed. Any ideas? Nikki
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I can't recommend any specific bank but I hope that you won't take offence if I suggest that you're going about it the wrong way.
Scenario No. 1: You're a fairly junior bank employee who has just been asked to see someone who wants to open a business account. It rapidly becomes clear that the person making the application has a a poor credit history. There are rules to be followed and you don't want to jeopardize your career. Result - Application refused.
Scenario No. 2: You've risen within the bank's hierarchy to reach the title of 'Small Business Manager". You're contacted by someone who says he/she wants to discuss his/her plans for a new business. This person turns up for his/her appointment not only full of enthusiasm but with detailed and realistic business plans showing cash flow projections and the results of careful research into the potential sales for his/her products or services. You find yourself convinced that you're dealing with someone who is going to be a successful entrepreneur. Because of this you ask how the bank can help. OK, there seems to be a small problem of a poor credit history but the business plans look good and, after all, you're senior enough to be allowed some discretion in these matters. Result - Application accepted.
So, what am I suggesting? Simply, don't just apply for a business account. Make an appointment to discuss your business plans. Turn up with every possible detail and piece of research that the bank could possibly ask for. Convince the bank that they'd be mad not to give you an account.
There can be no guarantee that my suggestions will get you that business account you want but they might well improve your chances!
Best of luck!
Chris
Scenario No. 1: You're a fairly junior bank employee who has just been asked to see someone who wants to open a business account. It rapidly becomes clear that the person making the application has a a poor credit history. There are rules to be followed and you don't want to jeopardize your career. Result - Application refused.
Scenario No. 2: You've risen within the bank's hierarchy to reach the title of 'Small Business Manager". You're contacted by someone who says he/she wants to discuss his/her plans for a new business. This person turns up for his/her appointment not only full of enthusiasm but with detailed and realistic business plans showing cash flow projections and the results of careful research into the potential sales for his/her products or services. You find yourself convinced that you're dealing with someone who is going to be a successful entrepreneur. Because of this you ask how the bank can help. OK, there seems to be a small problem of a poor credit history but the business plans look good and, after all, you're senior enough to be allowed some discretion in these matters. Result - Application accepted.
So, what am I suggesting? Simply, don't just apply for a business account. Make an appointment to discuss your business plans. Turn up with every possible detail and piece of research that the bank could possibly ask for. Convince the bank that they'd be mad not to give you an account.
There can be no guarantee that my suggestions will get you that business account you want but they might well improve your chances!
Best of luck!
Chris
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