How Can You Open A Business Account With No Credit Score

[matrrx]

I will try my local chamber on monday, i just wish that the new government would make some kind of ruling to ensure all new startup companies are given a fair chance to get going and not hit a brick wall at stage one.

[Neeta]

Neeta,

Start a thread everyone is here to help as I want to help you. If the comapny is clean you should be able to open an account.

Try another bank whom the company is not endebted to, preferably one which the directors have no connection.

Surely you will be okay......... any comments from anyone with experience please

 

Thanks Exasperated, I'll do that - Im at my wits end, I've kept everything straight and free from bad credit with HSBC itself but it's the credit checks that have stopped us moving on. I'll open a thread and see if anyone can help cheers

[matrrx]

Well today i have tried my local Chamber of comerce with no joy, inBiz is only available to people on benefits, but i do have a glimmer of hope i called the national debt line who seem to think that the RBS foundation account should meet the needs of a limited company and they also indicated that people with adverse credit would be accepted, so fingers crossed and if all else fails at least in 6 monthe inBiz will be able to help me as i will be on benefits by then lol.

[flyingchap]

I'm just applying for a Foundation Account at NW for a new limited company now, and my rating isn't snow white so will let this forum know how I get on.

 

According to all the PR puff Natwest put out about it (google for it), they have "a type of business account for everyone". Well I plan to hold them to it. Let's see...

 

For those of you stuck for a business account, there are one or two alternatives to conventional banks - entirely legiitimate ones - that I'll put in another posting.

 

PS: some examples of that Natwest PR:

http://www.thebusinessmix.com/index.php?option=com_content&view=article&catid=55%3Auk-business-news&id=357%3Anatwest-foundation-account-new-bank-account-for-owners-with-poor-credit&Itemid=80

 

http://www.natwest.com/business/products/business-current-accounts/foundation-current-account.ashx

 

http://www.moneynews.co.uk/4634/natwest-business-banking-launches-foundation-account/

Edited August 18, 2010 by flyingchap
additions

[flyingchap]

A WORKABLE BANK ACCOUNT FOR BUSINESS WITH NO CREDIT CHECKS

 

For those of you battling to get a simple in/out banking facility when your credit rating won't let you in to regular banking, I recommend you go and look at this company:

http://www.mycashplus.co.uk/default.aspx

 

The point about this - CashPlus - is that it is a prepaid Mastercard account, BUT it also has the recent addition, of internet banking facilities for OUTbound payments to other bank accounts as well.

 

So - (1) you can receive money into it by bank transfer in the usual way (it has a sort code and account number as usual) ; (2) you can make outward payments using the card as a Mastercard in the usual way; AND (3) you can make bank-transfer outward payments to other organisation too, using the internet banking feature.

 

So this 'card' is really a whole bank account, fronted by a prepay card. I can vouch for it, they are 100% credit-check free and absolutely anyone can have one: they guarantee this on their website. I have one and it works fine. Even the fees are modest: £4.99 a month if you have that much: but blessedly, if you don't have it, they don't charge you that month.

 

Businesses with that kind of attitude I can do business with: so I don't begrudge the modest £4.99 to have all that functionality. Go try it - works well. Is operated by an entirely credible card services operator called APS Financial services who you can lookup: CashPlus is their own brand, and they also 'brand' versions of it for other people.

 

Good luck all

[flyingchap]

Thanks Exasperated, I'll do that - Im at my wits end, I've kept everything straight and free from bad credit with HSBC itself but it's the credit checks that have stopped us moving on. I'll open a thread and see if anyone can help cheers

 

Hi Neeta - see my posting added today (midday 18 August 2010) for a solution that should do the job for you.

[matrrx]

looked good until i read this in there terms and conditions

13.9 The Financial Services Compensation Scheme is not applicable for this Card. No other compensation schemes exist to cover losses claimed in connection with this Card. This means that in the unlikely event that AFL becomes insolvent your funds may become valueless and unusable and as a result you may lose your money.

would feel a bit uneasy putting all business money in there

[flyingchap]

For goodness sake, matrrx, do you not know the expression "needs must when the devil drives" ? (Devil in this case being all the bas*tard banks who won't help). The whole point here is just to GET some account which allows money-in and money-out. As opposed to no such account.

 

There is no security issue there: if you look up APS they are entirely credible and stable and in any case, you can easily open a basic savings account at a building society whatever your status, and if you're worried about too much cash sloshing around in the CashPlus account, just move it to the savings account. The reason a savings account is not the solution to this problem itself, is that they don't permit [any useful] outward bank-transfer payments.

 

For information - this is APS Group who operate these cards, by the way. They're regulated by the FSA. Judge for yourself : http://www.apsgroup.com/index.html

Edited August 18, 2010 by flyingchap
added APS URL

[crockie]

I'm just applying for a Foundation Account at NW for a new limited company now, and my rating isn't snow white so will let this forum know how I get on.

 

According to all the PR puff Natwest put out about it (google for it), they have "a type of business account for everyone". Well I plan to hold them to it. Let's see...

 

For those of you stuck for a business account, there are one or two alternatives to conventional banks - entirely legiitimate ones - that I'll put in another posting.

 

PS: some examples of that Natwest PR:

http://www.thebusinessmix.com/index.php?option=com_content&view=article&catid=55%3Auk-business-news&id=357%3Anatwest-foundation-account-new-bank-account-for-owners-with-poor-credit&Itemid=80

 

http://www.natwest.com/business/products/business-current-accounts/foundation-current-account.ashx

 

http://www.moneynews.co.uk/4634/natwest-business-banking-launches-foundation-account/

 

We applied for the Natwest foundation account whilst we had a step account with Natwest (step account was being run satisfactorily) and we were refused.

[flyingchap]

ANOTHER A WORKABLE BANK ACCOUNT FOR BUSINESS WITH NO CREDIT CHECKS:

 

Further to my note above, here's another Prepaid card which has electronic banking facilities built in, and can accept monies-in by bank transfer too. So, effectively a status--free bank account:

 

http://www.clearcash.co.uk/static/bill_pay#2

 

Good luck all

[flyingchap]

AND YET ANOTHER ONE (WORKABLE BANK ACCOUNT FOR BUSINESS WITH NO CREDIT CHECKS):

 

Here's another Prepaid card which has electronic banking facilities built in, and can accept monies-in by bank transfer too. So, effectively a status--free bank account:

 

https://www.cardonebanking.com/landingPages/application.aspx?sourceCode=10426000

 

Good luck all

[crockie]

Just wondering if anyone has had an success yet obtaining an account.

 

We need an account in the name of Ltd company NOT a prepaid debit card account in personal name.

 

We have tried several banks now with no luck, at this rate the Ltd company is going to have to go on hold.

[flyingchap]

I sympathise Crockie - still waiting to hear on my new application for a Foundation account at NW. Should know within a day or two.

 

If you can't get progress and have a business held up, why not hassle your MP with it : I certainly would go that way if I can't get one. We are all urged to get on and start businesses, and if the bl**dy banks won't help with zero-risk accounts then we need to collectively rattle the cage of government to kick the banks up the backside. We OWN RBS, let's remember, and a minister could just instruct them to get on and open accounts of the sort we're discussing for businesses that need them.

 

If you've not come across it you can find your MP through

w w w dot theyworkforyou dot com

[tosh1]

i also need to open a business account. i am going to natwest foundation account and will let you know

[flyingchap]

As a fallback there is always this outfit - they GUARANTEE to open you an account, for £169. Not dear in the long run, if it solves the problem.

 

Am not allowed to post URLs yet, but look for

0844 573 4878 or search LTDhypenCompanies

do t see owe do t ewe kay

[flyingchap]

SUCCESS !!

 

I posted a note above [ 18th August 2010 13:31 ] saying I was applying for a Natwest Foundation Account for a new limited company account, and I have a badly "bruised" credit record as a result of the recession.

 

I am pleased to report back that after six weeks thinking about it, good old Natwest have opened a Foundation account for my company. So they seem to be serious about the "helpful bank" moniker they've settled on recently.

 

A note to anyone else applying in a similar situation - I did NOT just fill in the forms and leave it to them: I actively "marketed" myself to them, told them why they should consider me no risk whatsoever, described my business history, and also made it clear that I was welll aware of all their "helpful bank" marketing (e.g. current TV ad), and would hold them to it. We do own them, after all.

 

In case helpful to anyone else, I should point out the following salient points of my application:-

 

1. I was 100% honest about my credit record - I spelled out specific detail in an attached letter, accompanying the application forms.

 

2. I also sat down with a young business manager in the branch and was equally candid with him : we completed the application together, and I made it clear to him that I wanted him to act as "champion" of my application internally. I said "...look - I can't progress your people internally, but you can: so please, you know my case, please stay on their back, on my behalf". He promised he would.

 

3. Halfway through, there was silence: I thought it had probably "gone aground". So I went in to chivvy the same business manager, and made him call internally to see where it had got to (interestingly it was "in referral" to the "lending dept" - even though I stated categorically in the application, that I did not have any desire to borrow a single penny). The young business manager told me he'd written his own accompanying note to the application, stressing the simplicity of my account need, and promised he'd see it on through.

 

I would recommend anyone else trying to do this to follow the above approach: I've used all the main banks over many years, and Natwest have always claimed to be best for small business: you can always "rub that in" when talking to them. I'm pleased someone there seems to understand reality anyway.

 

Good news for my MP too - he can breathe again now (I had already put his secretary on notice that I might need to breathe down his neck to point his big guns at the bank )

 

BEST OF LUCK to all.

[flyingchap]

PS: I forgot to mention too - that Co-Op - who had had a "pause" on opening new bank accounts for companies, just due to being snowed under - are open again for new ltd company account business. The links on their website are active again.

[ltd]

I have just started my own ltd company I tried HBOS, HSBC & CLYSEDALE Banks for a business account I was refused by them all because of my credit rating. I applied online for Santander business account and after 7 days received an e mail saying my account had been opened. I did not have to provide any identification as I have a basic bank account with Alliance and Leicster.

Hpe this helps

[Volksfarmers]

I opened a foundation account with NAT west in Dec 2009 but found that they did not take card payments even though in their literature it stated that they did. I was with cardsave and streamline for my card providers so they are affliated. As most of my customers pay by card I could not continue banking with them so cancelled my direct debits with them but they would not accept my instructions so continued to charge returned items and then closed the bank account and then put me with a debt collection agency. SO be careful.

[Atreju]

Hi,

 

I have the same problem with opening a business account. I have been declined by Lloyds, Natwest and Barclays due bad history of the director although its a limited company. And currently using my personal account in paying money out and in etc.. But that is totally unprofessional and i really am in need of a business account. Currently i have 5 different businesses and all is working perfectly fine. So any tips where i can get a business account without being rejected and acceptance of the director bad credit score? Director is also in the process to sort out the bad credit score.

 

It's really frustrating if you urgently in need of a business account but they are refusing just because of some bad decision in the history and you are trying to sort out with new things to get it all sorted.

[MARTIN3030]

Yes there are lots of options for online accounts.Streamline were traditionally the major card processor but these days there are more solutions.

Have you tried Metro Bank ?

[MARTIN3030]

If you are declined by one of the HBOS Lloyds/RBS /Natwest group its likely that other applications within their others will be declined.

[MARTIN3030]

Here is some info about online payments.

 

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791016&type=RESOURCES

[barry_2008]

Sorry to dig up the cobwebs but The Foundations Basic Account is designed for those that have no trading history or bad credit.

So my understanding is if you have good or a decent credit rating and trading history there would be no need for the account.

 

Unless you do not want to open the account yourself that is then there may be alteria motives.

[MARTIN3030]

Good point Barry.

The foundation account in particular the one Lloyds offered,was used mainly by new startups.

With the scrapping of new deal and the roll out of the New Enterprise Allowance Scheme,there is going to be more support in these areas for existing business utilising mentors,volunteers and sponsorships.

These are going to need some big commitments from the banks-and I think we will see some easing or certainly smoother ways for those seeking to get accounts.

Theres good info on the bis website,and also business link.