Business accounts

[edg516]

Hi

Possibly starting contracting at some point this year, I'd sooner use my own company rather than an umbrella company so that I can see more of the cash after tax. The problem is that I have a shockingly bad credit score (long story) with several defaults against me. The debit is being paid back and there are regular payments showing against all outstanding debt. I know that this has had an impact on personal banking accounts since I now have a basic account. Will this prevent me getting a business account, dont want any credit and do not need a cheque book. Is there any such thing as a basic company account so that I can use/start my own company ?

[Kudos]

As long as you are not seeking any credit, I don't see a problem. I've seen previous bankrupts get accounts no problem.

You'll need to have the company formed first before you can open an account

[smartie]

you might struggle to be honest and I would ask around before committing to any expense. HSBC might be a good option, or Lloyds TSB.

[no1special]

You dont have a worse credit rating than a friend of mine, trust me.
I told him to go see my Business Manager at Natwest when he wanted a new business account.
Opened a new account no problem at all, except, like you already know, he cant get any credit, overdraft, etc.
I'm pretty sure he said that he got a chequebook though.
Try Natwest mate, I've been banking with them for 15 years both personal & business and cant faulth them!

HTH

[muppetdave]

Good luck getting one (not said in a sarcastic tone). When I started up in February last year, the business manager in HSBC insinuated that personal credit scores are a key factor (I've never had any credit issues though) in being granted an account let alone credit facilities.

I'm not saying that is the official line, just what she inferred. Best of luck with it though.

[edg516]

Hi
Thanks for the info, as it will be IT contracting if push comes to shove I'll use an umbrella company although I'd love to do it via ltd. I will get talking to the banks to see what they say

cheers

Ed