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Thinking of starting a business, need advice on trade v. personal accounts please.

5 replies

Jamandtoast · 13/08/2010 09:06

I am in in the very early stages of starting my own business, basically, I am trying to work out if there is anything that would stand in my way of starting a business, the only thing I am a bit worried about is that I have an awful personal credit history (DH made redundant, debt built up, we couldn't pay, so we are slowly digging our way back out of the doom).

The business to a large extent would depend on trade accounts, it is possible to do without but it would just make things much easier if I had access to them. Would my personal credit history effect a trade account in my business' name? And if not what's the best way to build up a good bussiness credit history? And if it does effect trade account's, is there anything I can do to help?

The plan is that if I can the business up and running, any profit would go to paying a lot more of the debt off than we can afford now, but feel like we may be caught in a catch 22? - Trade accounts would make it easier to make more money to pay off the debts v. needing to pay off the debts to get the trade accounts?

TIA

OP posts:
Jamandtoast · 13/08/2010 09:56

Little bump :)

OP posts:
Jamandtoast · 13/08/2010 11:35

And another one :)

If no one knows the answers, does anyone know where I can find out the answers?

OP posts:
Jamandtoast · 13/08/2010 14:26

Blush One last time...

OP posts:
tinytalker · 13/08/2010 15:06

See if you have a Business Link in your area. It's a government agency that offers training, advice and support to people who want to start their own business. I've found the one in my area very useful. HTH

racmac · 13/08/2010 15:06

Are you starting limited Company?

Im not sure on the answers but Im thinking that
If you have a poor personal history then you will not be allowed an overdraft by the banks on a personal account

But then on a business account you have to apply for an overdraft and they credit check you.

You get charged for a business account although i think most banks do a period where this is free.

Most Companies would credit check to open accounts and Im guessing that they would prefer business accounts

sorry not much help - perhaps speak to an IFA or bank manager

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