Bad Credit Business Bank Accounts

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6 Oct 2008
Is it possible to get business bank account with terrible credit rating? OK, basically I am in debt by £16,000 and have a few CCJs next to my name. All of my debts I now pay through a debt management company which means I get a low, no interest monthly payment. These debts are from a childhood of spend spend spend and are not business related.

Is it still possible to get a business bank account with such a poor history? Obviously I would not be able to get a credit card or over draft but thats not what I would be after. Just a basic business acount would be fine.

Any advice on where to go or what to do would be great.


I wouldn't say that it is impossible to get a business bank account with a bad credit rating, if your business is a limited company then you would open the account in the name of the limited company, as a seperate legal entity. As a sole trader, obviously you and the business are one and the same, which may cause problems for you, but i have found that once your first set of accounts are available, this can help a great deal as you have shown some form of trading history. You should try to make an appointment with your local bank and just be open and honest with them, you certainly won't be the first person in this situation, and won't be the last!


Tim Brown


We help people just like you, Iv had clients that are worse off - previous bankrupts. We can help you with a business bank account, debit card and cheque book 9 out of 10 accepted. visit or call our office on 01782 26 98 99


2 Jun 2009

Tim's comments are useful but not a complete statement about the reality of the situation.

Firstly, as it is unlawful to operate a business through a personal account, anyone with adverse/poor credit will have significant problems opening a bank account through the standard route. Without a bank account, you can't obtain the first years' accounts which Tim suggests. Catch-22 is the phrase many people use for this.

There are companies who can assist (and we are one of them), but beware: there are many so-called "experts" out there promising the earth. The vast majority are unregulated and unregistered and since you will be providing them with personal information, I strongly recommend that you use a firm which is:

Licensed by the Office of Fair Trading (as we are)
Is registered with the Information Commissioner under the Data Protection Act (as we are)

Also, beware anyone claiming "Guaranteed" accounts. They are an urban myth since without proper identification it is unlawful for a bank to open an account for anyone (Money Laundering and FSA).

Tim is also slightly vague on the issue of limited companies. Yes, they are a separate legal entity under the Companies Act, but as a Director or shareholder (usually 20% or more), banks will still credit check you and in most cases, even the slightest adverse credit will result in a rejection, let alone the £16,000 under a Debt Management Plan which you wrote about.

Yes, bank accounts are possible with adverse/poor credit. You will need some specialist advice. Contact us, or someone else, just make sure that they are a reputable company.


4 Aug 2009

Chris. You can check with the FSA or read your bank account conditions. Its also worth noting that you reference a document which is four years old, written by a journalist. This is hardly advice that anyone should take that seriously.

As the consequences of using a personal account for business funds are so serious (fancy getting a fraud warning and not being able to open any type of bank account or get any credit for years to come?), readers should be warned. Even accountants writing replies to other posts on this forum agree with me.

And, Chris, I never made any attempt to hide what our company does and I clearly stated that if in doubt (so far as anyone with adverse credit is concerned anyway), they should take advice from an expert. Yes, I mentioned that we provide services in this area but I did point out that there are other companies - just make sure they are regulated by OFT like we are or you may never see your bank account or your money again!


15 Jul 2010
Kevin Moorcroft

Well hello there Ian.. I thought you were dead or something! only i paid you nearly £200 over two months ago and HAVE NOT RECIEVED THE SERVICE THAT I PAID YOU FOR!!!... And dont you dare try and tell me that its because i gave you incorrect, OR misleading information because that is simlpy not the case.. I in actual fact still have the email that you sent me stating that my business account has now been opened with barclays bank in colchester... and that im to recieve a phone call from the business manager asking me to go into that branch of barclays with my passport and so on.... However, i made an appointment to see the manager of that branch, and guess what he said to me.. yep, he said that he had never heard of you or your company!.. needless to say there was no such account opened by you for me what so ever. So after waiting for just over a week, i started to try and contact you back for more info.. and oh my god you are one very hard man to get hold of!.. but, the very nice girls that took my 4/7 phone calls per day, just before you put your phone on to the answer machine, told me in the end that i was wasting my time as i would never see my money again.. and whats more.. when i had found out the contact number of the front desk of the office building where your office was".. the lady even told me that you had been slung out on you ear..Aahahahahah!!!... yes that made me laugh.. she said the phones never stopped ringing with people that you have ripped off and let down..

Anyway Ian.. needless to say, Every dog has its day, and mine will come fall circle in good time.

Good luck with that,