Biz Bank Account - but with CCJ

[Pot Bellied Fool]

Hi All.

Was asked a question recently but couldn't help as my contact in High St bank is off sick.

Chap I know from networking - already has a Ltd co with banking facilities - wants a sole trader account for some non-related stuff he does. Wouldn't be a problem except he picked up a CCJ last year when going through a bad time with hospitalised family members. A creditor with an arrangement got out of the box & he didn't get to check post in time. It happens. It's getting paid off.

But any opinions on which banks are most likely to be favourable to opening a simple sole trader account for him? debit card & online, no borrowing required.

Cheers.

[williamp]

Hard to say which one. When I used to be a business bank manager we would credit score them, but that didn't always mean no. It depends on when, how much, etc and the decision could be contested.

One thing to point out, as well is that as a sole trader he doesn't have to have a business account. As he and his business are one and the same, he could run it through a personal account. Its better to keep it separate in case hmrc take a look but it is legal to use a personal bank account for sole trader purposes. Just be very good at paperwork!!

[jammy_basturd]

Try Handlesbanken, they're what banks used to be - locally run offices that take decisions on a case by case basis. Not free banking, but I've heard the customer service is superb.

[Simpo Two]

williamp said:

One thing to point out, as well is that as a sole trader he doesn't have to have a business account. As he and his business are one and the same, he could run it through a personal account. Its better to keep it separate in case hmrc take a look but it is legal to use a personal bank account for sole trader purposes.

Get a second current account. You'll probably get a £100 introductory bonus too...

[bugmenot]

williamp said:

One thing to point out, as well is that as a sole trader he doesn't have to have a business account. As he and his business are one and the same, he could run it through a personal account. Its better to keep it separate in case hmrc take a look but it is legal to use a personal bank account for sole trader purposes. Just be very good at paperwork!!

I would advise against this approach. I have yet to see any terms and conditions for a personal current account which permit for the account to be used for business purposes. It's all good saving a couple of quid a month until the bank catches on they choose to close your account(s) with immediate effect. Another example could be if the debit card was used fraudulently and again if the bank finds out the account is being used for business purposes they could just refuse liability for those transactions.

[Liszt]

Mycashplus. It's really a prepaid card but for all intents and purposes acts as a bank account and no credit check.

[akirk]

If the CCJ was simply a matter of not getting to post in time (i.e. it would have been otherwise paid) what is stopping him from paying it off?
There is no need to pay at a monthly rate if you can afford to clear the debt, and if paid off in 30 days the CCJ is fully removed - ergo no issues...

[Pot Bellied Fool]

akirk said:

If the CCJ was simply a matter of not getting to post in time (i.e. it would have been otherwise paid) what is stopping him from paying it off?
There is no need to pay at a monthly rate if you can afford to clear the debt, and if paid off in 30 days the CCJ is fully removed - ergo no issues...

As I understand it a previously negotiated arrangement fell over & with everything else that was going on, it didn't get sorted in time. It'll probably be satisfied later this year I believe. So no, it'll be there on the credit check.

[Jasandjules]

Liszt said:

Mycashplus. It's really a prepaid card but for all intents and purposes acts as a bank account and no credit check.

Yes this.

I think it is a matter of pay the fee and open an account......

[Pot Bellied Fool]

Thanks everyone, info duly passed along to a happy bunny!

[andy-xr]

Nat West do a Foundation Business Account, basic account with no fees. You can have a debit card if you really want, but it's generally for someone to have their invoices paid into