For entrepreneurs who are launching a new business venture, or for well established SME’s seeking a new banking product, the guaranteed business bank account may be a great option. A guaranteed business bank account may be necessary for those of you who have a less than perfect credit rating, or for people who do not have a credit history.
Your Business Structure
A guaranteed business bank account can work effectively for a range of business structures, including sole traders, partnerships and limited companies. Many account options are available for you to select from. A guaranteed business bank account is one that requires a guarantor or some form of financial backing or support from someone outside of your business. Finding a guarantor can be difficult, because a guarantor becomes legally responsible for your business debts. Some options may include friends, family or business partners.
Small Firms Loan Guarantee
This is a government backed scheme that offers backing for up to 75 percent of loans up to £250,000. There are options available for new companies with poor credit histories. For many people seeking to establish a new business, this loan guarantee is an excellent option. If you are able to secure a small firms loan guarantee, you will normally be able to receive access to a business bank account also.
Angel Finance
This form of finance involves finding a business angel who is willing to give you money in return for a share of your business. When you are starting out in business it can be very challenging to establish yourself and maintain a good cash flow. There are many different angel networks available which can lead you to making connections with a suitable ‘angel’. You must always consider the impact of giving away company shares will have on your business.
Guaranteed Business Bank Accounts
There are many companies that can open a bank account on behalf of you business if you have a negative credit rating. You will need proof of your company status, such as a certificate of incorporation if you are a company. You will need to show proof of identity and proof of address. Your account will include a cheque book, paying in book, standing orders, company debit cards and more. You will need to pay a fee and this fee will cover business account opening and management process.
No related posts.
Business Banking News