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lisa123

bad credit rating = no business banking
« on: October 28, 2005, 04:54:55 pm »
Hi everyone, I thought my banking was being sorted until they decide to tell me that i have bad credit and they wuldn't offer me an account. This is my own personal bank! They are happy to have my personal money but don't want my business money. ( i have been dealing in cash for the last couple months)

Mind you, my bank won't even trust me with a cheque book and card. I only have a solo debit card.

How do I get around this? Iknow i won't get a cheque book and card, all i want is a business account to pay money into and cheques to pay in.
Can we hav a personal account instead? or is that not allowed?

I probably couldn't get a personal account either. I'm stuck, what should i do??  :'(

CMS

Re: bad credit rating = no business banking
« Reply #1 on: October 28, 2005, 05:01:50 pm »
The Halifax used to have a deposit account (not sure if they still do). It's not subject to a credit cheque as there are no cards/facilities etc.

This particular account was designed for clubs/associations and needs a couple of signatories to withdraw money.

You just use your business name as the 'club' name.

There are no facilities at all but at least you can clear cheques.

Other than that I can't help, sorry.

exoclean

Re: bad credit rating = no business banking
« Reply #2 on: October 28, 2005, 05:11:15 pm »
Hi Lisa,

Have you tried the Abbey? they were offering free business banking recently alternatively ask your bank if they are willing to just to let you deposit your cheques without any direct debits, standing order etc.. Or, do what I have been doing. I'm a sole trader and as such don't really need a business account I simply tell my customers I have just started and if they want to give me a cheque, to write it to me as a personal cheque.

Don't fret too much any major purchases you could always put it on a credit card. What bank are you with anyway?

Regards Paul

lisa123

Re: bad credit rating = no business banking
« Reply #3 on: October 28, 2005, 05:52:39 pm »
hiya
thanks for your replys
i with natwest, i used to think they were great until recently.
Are you allowed a personal account instead of a business account? I'm part of a partnership but the other partner i am thinking of dropping, she wants the money but not any responsibility. Have to see how it goes.
We would open an account in her name, but she has no passport for ID (no full driving licence either), and to be honest, I do all the work, put all the money in, all the stress and she does nothing. That will change if i get my own way.  ;D

I cant get credit cards. I can't have any form of credit thanks to mistakes in the past with money and men.

exoclean

Re: bad credit rating = no business banking
« Reply #4 on: October 28, 2005, 06:29:04 pm »
Hi Lisa,

years ago I had a so called partner like that, in the end I just told him to go. He was quite happy I did, gave him the perfect excuse to sit at home and blame everyone about his lack of money. Waster.

Anyway, as long as you dont trade as a ltd company I'm pretty sure you can use your personal account for cheques.

Good Luck

Paul

*Chris Browne

  • Posts: 863
Re: bad credit rating = no business banking
« Reply #5 on: October 28, 2005, 07:42:25 pm »
hi lisa
i'll second that, try the abbey, they have helped me out a lot, nothing but praise

chris

Ged

  • Posts: 315
Re: bad credit rating = no business banking
« Reply #6 on: October 28, 2005, 11:10:28 pm »
banks = paranoia  =they think everyones a bloody money launderer or terrororist. opened an account recently and thought they would need a blood sample plus dna .

Fox

  • Posts: 824
Re: bad credit rating = no business banking
« Reply #7 on: October 29, 2005, 06:58:09 am »
Oh dear - leaves you in a bit of a pickle! 

How bad is your credit rating? (Don't answer that on here just think about it to yourself) is it just catalouges and that sort of thing or is more serious such as mortgage arears or unpaid loans?

Ask your bank which credit checking company they use and send off to them to see the records they hold on you, this costs just a couple of quid and at least you will know what you are up against.

Have you got a proper business plan in place with your financial forcasts?  If not do one, also do a cash flow to present to show that you are making money.

Fight your corner with the banks with hard facts - are you debt free now?  Do you run your personal account well?  How long ago were your problems, how have you solved them and how do you intend to ensure they don't happen again?  Take your business plan to meetings, be up front and be prepared you may find someone to take the risk and give you an account.

As suggested previously try to open a deposit only.  As for using a personal account, yes you can do this if you are a sole trader, however it does present problems and you may end up paying high accountantcy fees to sort out the personal transactions from business.

Fox

Jan K

  • Posts: 665
Re: bad credit rating = no business banking
« Reply #8 on: October 29, 2005, 08:46:38 am »
I am not quite in the same sitch as you Lisa, my credit rating is good, BUT i have tried business banking accounts with both HSBC and Alliance and Leicester and they were both rubbish! In the end I opened up another personal accont with my personal bankers and I use that alongside my personal account!

Jan
anyone with facebook can add me at this link ...  jan 'minkeedj' kindon  .... if you can be bothered lol

domestic bliss

  • Posts: 161
Re: bad credit rating = no business banking
« Reply #9 on: October 29, 2005, 09:52:40 am »
Lisa.  I too had a bad credit rating about 8 years ago but all is fine now.  Have you tried lloydstsb they were really helpfull and i have gone on to open several accounts personal and saving as well as business and they cannot do enough for me.
As some others said find out whats on your credit rating because you can have problems if previous people had bad credit at your house before you.  We found that out when we contacted experian credit reference agency the chap who lived here before us was into all sorts of trouble.
Good luck

Eureka Ventures

  • Posts: 70
Re: bad credit rating = no business banking
« Reply #10 on: October 29, 2005, 06:56:28 pm »
Lisa

Here's a tune to cheer you up.

VERSE: It's a well known fact that the banks will give you an umbrella when the weather is fine, and demand it back when the rain comes.
CHORUS: Oh what high street bankers (rhyming slang) they are.

It's a very popular song, and bad credit is an unfortunate bind at best. But when, finally, the fat lady has sang, there is no option, as a business person, but to fix your credit rating.

Start by following Fox's suggestions. The two most widely used credit reference agencies are: Experian and Equifax. Your credit file from either(get both) will cost you £2 each.

Don't be afraid to ask the people you owe(if you still do) to reduce the amount outstanding  in return for a quick settlement. Be sure to get a letter from them saying you have totally settled your debt, then send a copy to the credit reference agencies.

To start to rebuild your rating get a credit card as soon as you are able. Someone like CapitalOne will consider you when others have refused. Put only those spends which you are able to pay off each month, so as not to attract any interest. The point here is to create a history of creditworhiness.

The challenge I would set myself is to have a rating so safe, that I would have the pick of the banking institutions and their facilities at most favourable rates. Of course they speak a different language to the rest of human kind. As a business person, however, it's at least worth brushing up to conversational level.

Best

Freddie
A consistently good service

Paul Forster

Re: bad credit rating = no business banking
« Reply #11 on: October 29, 2005, 07:11:09 pm »
There is nothing to stop you using a personal acount so long as you file the statments and paying in slips. You must use a seperatepersonal  acount for your business though or things will get too complicated.

Paul

dustdees

  • Posts: 334
Re: bad credit rating = no business banking
« Reply #12 on: October 30, 2005, 10:57:12 am »
I use my personal account, but I have another joint with my hubby, so we use that for persnol dealings!!

So each business transaction goes through my sole personal acount.

My hubby does my booksm then he sends them off the accountant.
Hope this helps Lisa!!

Denise

Paul Forster

Re: bad credit rating = no business banking
« Reply #13 on: October 30, 2005, 12:36:44 pm »
I use the same systme as Dustees (seperate personal acount for business) When I looked into business acounts most  banks wanted me to put in about £3000 in order to open it.

 As the bank's  intrest rates are very poor I prefer to store my business float and personal savings in  ISA's and high intrest acounts. I would  rather not be a slave to a bank that will charge for cheques, interogate you before alowing you to open an account, pay crap intrest and restric the amount of debits and credits per month.

My acountant is happy with the above systme and has commented that almost half of his selfemployed  clients use personal acounts rather than business acounts.

Paul

lisa123

Re: bad credit rating = no business banking
« Reply #14 on: October 30, 2005, 10:51:43 pm »
thanks everyone, its good to know there are ways around it.
I do have some debts but i am making regular payments to them. They will be paid off eventually. Some sooner than others.

I'm going to find out if i can have a personal bank account anywhere. I have applied for another with my natwest bank, and one at the abbey, see how it goes.

thanks again everyone.

Oh by the way, if anyone has any work for the shrewsbury area, but can't get to it, please email me.
I'm moving to chester in january so any work there would be great too.
I would like to find some communal, or office cleaning if possible in chester.

thanks xx