Business Bank Account

I went to Abbey, who offer free basic business banking, im sure they will be the first to admit that business banking is not their core business but I must say I had no problems setting up my account and have had no problems since ( only been set up a month or so )

Neil Bayton
www.excellentscents.co.uk

HI Becca,

Did you have any luck with the bank accounts, I'd be interested to hear what you have found out.

Nope no luck as yet.....have tried just emailing Barclays (who said it would be at the Manager's discression) and Abbey (who haven't got back to me still) but no one will give me a straight answer. Also have tried speaking to Business Link but they have just said that it is up to the bank and they dont really know.

I'm all new to this as well.

But my guess is that you would have problems if you were a sole trader.

If you set yourself up from Day One as a Limited Company then it should have nothing to do with your personal credit history.

It's silly because at the end of the day, the bank turning you down is basically them turning down money.

I thought that too but apparently it is based partly on your personal credit history :-(

Hi Becca

Are you trying to borrow money? Personal credit history will always become involved as you are an officer of a company - if it is limited and they want to make sure that you don't end up owning them large sums. They will always ask for a personal guarantee for any company borrowing. Not sure what part of the country you are but you should ask to speak to a commercial relationship manager. I have a number of accounts (business) with HSBC and find them to be very good. They have a commercial centre in Weybridge and Harrow but will have others around the country.

Ian

Hi Ian
Nope not after borrowing money just an account to pay money into and out of. HSBC turned me down when I made an application over the internet.

Becca

We're looking at putting together a report on business banking and would love to include your experiences and thoughts. Either leave them here or email me.

Many thanks

matt thomas
matthewt@crimsonbusiness.co.uk

Hi Becca.

May I suggest picking up the phone and asking to speak with a Business manager. These over the internet applications aren't appropraite for businesses in my humble opinion. I will happily give you contact and direct dial telephone number for my manager. She is most helpful and you'll get an honest review of what you want to do.

I am not sure if there is a Private Message Service on this board. If not let me know and I will make arrangements to leave my contact details with Crimson.

Ian

Have you tried Alliance and Leicester. I have used them for three years and never had a problem. You can pay money into their branches or via the Post Office counter. Low charges, and value for money for a small business user

You could join the Federation of Small Businesses (www.fsb.gov.uk). They have a deal for members on free business banking for life - I think it's with Co-op bank. It'll cost you the annual subscription but it'll get you around your problem.
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Mike Tombs
TaxAssist Accountants
www.taxassist.co.uk/dudley

Thanks Jackie21 might just try them

How much does joining the Federation for Small Businesses cost?

It depends on number of employees but it's around £120 I think. You can look on their site www.fsb.org.uk. They offer a really good range of membership benefits which justify the cost anyway - the banking thing is just one of them. (No, I don't work for them!)
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Mike Tombs
TaxAssist Accountants
www.taxassist.co.uk/dudley

Ta very much (are you sure you dont work for them :-p)

Everyone I speak to who's joined paid the £120 because they thought it'd be useful at some point but has never really got anything from it. Unless you're very pro-active in wanting to be part of a business group and campaigning government etc then i wouldn't bother

I just thought I would add that I joined the FSB 14 years ago. If you ever employ anyone the legal cover for employment matters and the insurance cover for any potential claims is well worth the membership fee. I have had cause to use the legal service on two occaisions over the last 10 years and they were really helpful and saved me a fortune in normal legal fees. They are also providing and guiding me through the maternity paperwork employment. Just so that I don't do anything wrong by accident.

Hi Becca,

I am in the same boat. I've been turned down by the co-op. I have spoken to Natwest (who I bank with) about it and they have a business bank account for people with a low credit score. All those on the account mustn't have over £1,000 of bad debt between them though. (Also remember of course that you and anyone else applying must be on the electoral register)

I am giving it a go but of course the more you apply the more you affect your credit rating.

Someone also told me about an account at Nationwide but you need to have £5,000 to open it.

Keep us updated.

Thanks for that...will have to go have a look :-)