Client cant get a company bank account

Client cant get a company bank account

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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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By occca
22nd Feb 2010 07:38

Another director?

Could the company appoint another director who doesn't have credit issues?

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By gbuckell
22nd Feb 2010 11:25

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.

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By carnmores
22nd Feb 2010 14:06

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

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