I have a client who has a poor personal credit history and as such cant find anyone who will open a bank account for his newly formed limited company.
He wont need an overdraft, or any lending facilities, just an account in the company name to deposit cheques/cash and use to pay company expenses.
Any suggestions?
At present he is using a personal account for all of the company transactions but I am aware this will have to be treated as a DLA and isnt ideal by any means.
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Another director?
Could the company appoint another director who doesn't have credit issues?
Not necessarily a DLA
Although not ideal, putting the transactions through a personal account does not necessarily create a DLA. He is acting as agent for the company and thus holding the money on behalf of the company - the company has not lent it to him - it remains company money. It should be described as such in the company accounts with the funds shown as cash at bank - not in debtors. It would be helpful to have a letter from the individual addressed to the company acknowledging that he holds the funds on behalf of the company.
these bastards infuriate me
most of the banks were bankrupt themselves and bailed out - cant they show some basic human decency and humility and treat others as they have been treated themselves