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Starting a New Business But Have Bad Credit?


We recently assisted a client incorporating a Limited Company, but unfortunately the client had bad credit.

Although a Limited Company is a separate legal entity from its directors and shareholders, bad credit can cause significant issues when setting a company up.

Bank Account

The first issue the client faced was opening a bank account. No high street bank would open a bank account in the name of the company due to the owner and director’s bad credit.

The client was giving up hope, but we found a solution.

Non-traditional banks are more likely to approve bank account applications than their high street counterparts.

Our client used Cashplus, an online based bank, but another option is Tide. These non-traditional banks are becoming more and more popular and are a great alternative to your standard high street bank.

Credit Facilities

Due to the owner and director’s bad credit, applying for a credit facility for the business was impossible.

However, there was a light at the end of the tunnel. Speaking to Rangewell, a corporate finance company which Edwards Bailey Chartered Accountants recommends, the company should be able to begin applying for credit within 3 – 6 months, provided its credit score is average.


Do not be put off setting up a company if you have bad credit, use an adviser who can assist you. Things may be more difficult to start with, but will get easier over time.

If you would like to discuss any of the information in this article please call Edwards Bailey Chartered Accounts on 07851237635 or email at

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