SVA Forum

swiftandsure · Joined: 14 Apr 2010 Posts: 21 Location: North West

Hi all,

I've been struggling to open up a business bank account due to a poor credit rating. I've tried my own bank (Santander) without success and now I'm trying Natwest. I need to have a business account because if I get it, it means I'll receive a £500 grant from a firm called Wirralbiz who support start up businesses in my area.

Does anybody know of an easier way of doing this? Santander took the best part of 2 months to say 'no' and I'm currently waiting for Natwest to reply. Is there a more understanding bank out there somewhere?

The irony of all this is I currently have no debts whatsoever, but it takes ages before the credit rating builds up again. Also, the more I try and fail to get an account, it is seen as a 'black mark' by the credit-reference agencies - and the more my credit-worthiness spirals downwards....

Help!
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Sally@Stonetext · Posted: Thu Jun 17, 2010 10:58 pm Post subject:

Possibly the Post Office?

Are there any banks with physical branches in your town that you can actually go and speak to and explain the situation? If Santander is your personal bank then I would question them as to why they have refused you, especially if you have no debts. The last thing you want is a trail of refusals.

How about speaking to Citizen's Advice Bureau? They usually have specialist advice on this.
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Eclipse · Joined: 14 Apr 2010 Posts: 48 Location: Cheshire

Hi Paul

I made an appointment with the business manager of NatWest and he was fantastic. I went in armed with my business plan and projections and he opened my account there and then. I've not had a fantastic credit rating in the past and, unlike you, have in fact got a small amount of debt on a credit card.

Rather than a business account have you thought about opening a separate personal account in the interim or does it specifically have to be a business one to be eligible for the grant?

I know if you go through Experian it will tell you which credit card companies will accept you on the info Experian holds prior to the search being run, therefore you can apply for the one that you know will accept you so that it doesn't leave a negative footprint. I know this to be true as I've just used the facility for a balance transfer. I do not know whether or not the same applies to accounts but it wouldn’t hurt to look.

I do wish you well as there's nothing worse than coming across closed doors.

Victoria
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caroline · Posted: Fri Jun 18, 2010 10:09 am Post subject:

I absolutely hate this - they don't give you credit on new business bank accounts anyway - why would they care about your credit rating??

Firstly, ask for a bank account with no cheque book and no credit/debit card, just a cash card and internet banking. Banks regard all those things as being "credit" on high risk customers.

Post Office I believe has one of these but I'm not sure if it's supposed to be for business use. Even if you opened another personal account and used it as your business account, that would be better than mixing everything up in the same account.
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dawnjlane · Posted: Fri Jun 18, 2010 1:41 pm Post subject:

Hi Paul

A quick Google for bad credit bank accounts has brought this link up http://www.creditsolveuk.com/business.htm - may be worth speaking with them, you can always say no if they charge too high.

Good luck

Dawn
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Isti · Joined: 02 Jan 2010 Posts: 8 Location: Wirral

Hi Paul,

Wirralbiz can put you in touch with HSBC, (they did for me) and there is also the incentive too, a £40 referrel fee that HSBC gives to Wirralbiz which they give back to you. I find them very helpful and there is no charges for the first 18 months.

Speak with Lee @ Wirralbiz he will be able to advise.

Tina

ulsaba · Joined: 09 Jan 2010 Posts: 40

When I did the "Becoming Self-employed" workshop with HMRC they told us that as long as we can account for money going into our account we wouldn't need a separate business account.

Depending on the legal entity you chose this may be the way forward. Easier to manage as well, you'll have enough log-ins, spreadsheets etc as it is. Maybe call your local HMRC and find out?

caroline · Posted: Fri Jun 18, 2010 3:52 pm Post subject:

But it does make it easier to administer if it's in one separate account though! Personally I love being able to download the bank statement and work off that rather than having to figure out what's work/personal expenses.
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ulsaba · Joined: 09 Jan 2010 Posts: 40

Of course it depends on your preferences and it can be easier to work from the business account. Just wanted to point this out, as the banks are surely not going to mention it.

When I started I was quite happy that I didn't need a business account and find managing it "all in one" quite easy. Then again that totally depends on the number of transactions and if it's a joint account with a partner etc.

suzi · Joined: 05 Dec 2007 Posts: 76 Location: warrington,cheshire

Have you tried the co-op bank?

Suzi

swiftandsure · Joined: 14 Apr 2010 Posts: 21 Location: North West

Thanks everyone for the replies and very kind advice... wow, so much to consider!

I'm waiting for Natwest to come back at the moment, but if that goes nowhere, I'll come back here and pick up some pointers. Tina, I'll try Lee at Wirralbiz (I have spoken to him before, but that was before these problems arose). Victoria, I DO need a full business account to qualify for the grant, so I'm sort of 'holding out' for this at the moment. Maybe I'll have to forego this in the end, but that was the money I was going to use on marketing. At the moment, not enough potential customers know I exist.

I'll let you know how I get on and thanks for all your advice once again Wink

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Easy Virtual Assistance
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swiftandsure · Joined: 14 Apr 2010 Posts: 21 Location: North West

It's good news!! Natwest said YES in the end and I'm up and running and my grant has now come through.

I'm having a bit of a slow start - just some very small jobs so far. Still, I know I need to get marketing / networking and to get some business cards out there. I think my website isn't very good, so the first thing I bought with the money was Serif Webplus - now it's onwards and upwards! Thanks everyone for your advice :-)
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