My Poor silly young friend

[lilelvis2000]

I have a young lad helping out as a volunteer in my wife's office. We've helped him to identify a niche business opportunity and he's setup a limited company. The big problem he has is that as a young lad, he's taken the crdit system for a ride and has got himself blacklisted, so he can't open a business account.
I've tried a couple of places but they don't even bother with the application form. He's told no straight away after he provides his details.
Is there a bank somewhere that could give this man a basic account with no facility other than cheque book?

I havn't tried the Cater-Allen - but I reckon they will refuse him.

[Alan @ BroomeAffinity]

All banks take this view. Its odd when you consider that they aren't offering facilities but my bank account contact mentioned that they could go on a bit of a rampage with the cheque book and leave the bank high and dry.

There are companies around which can arrange non-status bank accounts. I think they open a bank account in their own name and then designate it for the applicant's sole use. Don't know if it is possible with Ltd Co's though and they look to be run by shysters so would probably cost an upper and lower limb.

[moorfield]

Create a ltdco off the shelf with you or your wife nominated as director.

Then apply for a business bank account against your/wifes/ltdcos name.

Once done, appoint your friend as director and remove you/your wife from the ltdco.

[SueEllen]

The Halifax have an account for such people but it doesn't have a cheque book. I know for personal customers passbook accounts will allow you to get building society/bank cheques by going into the branch. (Phone them up and check.)

http://www.halifax.co.uk/savings/treasurersaccount.asp

An account specially designed for customers managing funds for a company, club or charity.

* Tiered variable interest paid annually at rates up to 3.60% AER (on balances of £100,000+) – so the more you save, the more interest you earn
* Open an account from as little as £1
* Up to four people can use the account
* Make unlimited deposits and withdrawals in branch using a passbook
* View your Halifax Treasurers' Account online

Apparently the staff in the Halifax are not very aware of the details of this account so may give you the run around but it does exist. I suggest you or your wife being older than the young lad go into a branch with him and be persistent about opening the account.

[Alan @ BroomeAffinity]

Create a ltdco off the shelf with you or your wife nominated as director.

Then apply for a business bank account against your/wifes/ltdcos name.

Once done, appoint your friend as director and remove you/your wife from the ltdco.

The bank will do a credit search on the new director when appointed and can still refuse him. Obviously, they can't insist he is removed as director but they can probably have the account closed.

The halifax option seems a good one though.

[lilelvis2000]

The bank will do a credit search on the new director when appointed and can still refuse him. Obviously, they can't insist he is removed as director but they can probably have the account closed.

The halifax option seems a good one though.

Didn't know about the Halifax option. will mention it to him when I see him on Monday.

I tried to get him in to my bank..because I was refused a couple of time because I had not lived in the UK for more than three years. but they too refused. I was later told by a bank contact the bank must have looked the other way for me.

Also the banks somehow indicate that he should not even be a director...but as far as I know only a criminal conviction or bankruptcy can prevent someone from being a company director.

[Gonzo]

Also the banks somehow indicate that he should not even be a director...but as far as I know only a criminal conviction or bankruptcy can prevent someone from being a company director.

A criminal conviction shouldn't matter. (Not that I have any experience of course )

Undischarged bankrupts and people that have been disqualified from being a director by the courts are not allowed to be directors, but I think those are about the only reasons that can stop someone from being a director.

[ruskithebear]

"Sadly, there's a tragic problem in the UK with banking exclusion. If you are one of the people who can't get an account, it's a nightmare. Yet the one under-publicised route is a Basic Bank Account. These are specially designed products for those with very poor credit scores."

Linky - http://www.moneymadeclear.fsa.gov.uk...k_accounts.pdf

I worked for the princes trust helping people in Similar situations and they set up as a sole trader and stuck the money in their personal accounts until the credit history got a little better. We weren't talking major money or high finance just people who were grinding it out doing car valeting, hair salons, cafe's etc......

Nobody really cared as long as they got paid and VERY few raised an eyebrow at paying a person rather than a company.

I hope the above helps

[lambrini_socialist]

fack. i just got turned down by my (personal) bank when trying to open a business account. today just went downhill in a big way.

[Platypus]

I have a young lad helping out as a volunteer in my wife's office. We've helped him to identify a niche business opportunity and he's setup a limited company. The big problem he has is that as a young lad, he's taken the crdit system for a ride and has got himself blacklisted, so he can't open a business account.
I've tried a couple of places but they don't even bother with the application form. He's told no straight away after he provides his details.
Is there a bank somewhere that could give this man a basic account with no facility other than cheque book?

I havn't tried the Cater-Allen - but I reckon they will refuse him.

Nationwide do a basic bank account, but no cheque book. But you can do internet banking. Not sure if available to Ltds though.