Business bank for used car business.
Business bank for used car business.
Author
Discussion

cashmax

Original Poster:

1,374 posts

258 months

Wednesday 1st October
quotequote all

A friend and I have a small business that has found a very small niche in the market where we supply used cars to specific dealers and make a margin when they sell. It's gone quite well and the business has generated about £100k of margin so far this year.

We used Starling and randomly they decided they wanted to close our account because they didn't support our SIC code anymore. The same appears to be true of almost all the online challenger banks (Tide, Monzo, Revolut etc) - none of them want to support a business that involves used cars.

Very annoying, because the integrated invoicing worked very well and we only needed this and the ability to make quick transfers.

Just wondered if anyone else had a similar experience?

ADJimbo

724 posts

204 months

Wednesday 1st October
quotequote all
cashmax said:
A friend and I have a small business that has found a very small niche in the market where we supply used cars to specific dealers and make a margin when they sell. It's gone quite well and the business has generated about £100k of margin so far this year.

We used Starling and randomly they decided they wanted to close our account because they didn't support our SIC code anymore. The same appears to be true of almost all the online challenger banks (Tide, Monzo, Revolut etc) - none of them want to support a business that involves used cars.

Very annoying, because the integrated invoicing worked very well and we only needed this and the ability to make quick transfers.

Just wondered if anyone else had a similar experience?
NatWest will deal with Automotive and I think that the Bank of Scotland do (or it could be Royal Bank of Scotland - can’t remember which).

I too flirted with business banking with Starling and moved away from them quickly. They just seem to make their own rules up as they go along from what I can tell.

JimmyConwayNW

3,305 posts

143 months

Wednesday 1st October
quotequote all
cashmax said:
A friend and I have a small business that has found a very small niche in the market where we supply used cars to specific dealers and make a margin when they sell. It's gone quite well and the business has generated about £100k of margin so far this year.

We used Starling and randomly they decided they wanted to close our account because they didn't support our SIC code anymore. The same appears to be true of almost all the online challenger banks (Tide, Monzo, Revolut etc) - none of them want to support a business that involves used cars.

Very annoying, because the integrated invoicing worked very well and we only needed this and the ability to make quick transfers.

Just wondered if anyone else had a similar experience?
Hi,

Used car dealer here. Metro bank is absolutely fine and no issues with payments being held when buying off privates with a very decent daily limit so don't encounter problems.

Good luck with the venture.

MisanoPayments

534 posts

60 months

Wednesday 1st October
quotequote all
I had the same issue before the summer. Despite my business operations remaining unchanged since inception, Starling gave notice.

After a few of the Challenger banks didn't proceed (why can't they ask you for your SIC code before you start registering?!) I went with Lloyds and to my surprise, even had a call with a real person to understand more about my business.

Good luck!

Edited to say I'm in foreign exchange.

alfabeat

1,352 posts

130 months

Wednesday 1st October
quotequote all
Wise bank seem quite relaxed about industry types I think. I'm in travel and tourism which is always seen as a bit of a high risk business industry and Wise didn't question that. Maybe worth a go.Very easy to set up a business account with them as well.

JimmyConwayNW

3,305 posts

143 months

Wednesday 1st October
quotequote all
I've yet to meet or speak with a bank that doesn't hate the motortrade.

Banking is a problem. They don't like to loan, they don't like to overdraft, they don't like to lump sum to borrow money as you ended up with the only option being to use stock funding at ridiculous rates or be beholden to finance houses on reciprocal agreements who then change goalposts and have you jumping through hoops.

Its incredibly frustrating particularly when you are well set up, not overly geared and do things the right way.

alfabeat

1,352 posts

130 months

Wednesday 1st October
quotequote all
Wise bank seem quite relaxed about industry types I think. I'm in travel and tourism which is always seen as a bit of a high risk business industry and Wise didn't question that. Maybe worth a go.Very easy to set up a business account with them as well.

SandhurstCars

13 posts

12 months

Virgin Money were the only bank I could find for my small used car business. Natwest, HSBC, Barclays all turned me down