Business Bank Account

[Sy1441]

So bit of background. I've set up a new ltd company which will invest in other business that deal in property (serviced accommodation, flips, BTL etc). This company likely won't own any assets per se but will rather have asset backed security for the loans it will make. The funds used to invest will come via a loan from my main ltd company in the telecoms sector. The value of investment is starting at £100k and will likely be multiples of this going forward. The interest from the loans will paid back to the new ltd company on a monthly basis.

I'm really struggling to find a bank that will let me open an account in the new ltd company name for this purpose. So far Startling, Revolut, Monzo and HSBC Kinetic have all declined the application. Any advice on banks that would let me open an account, my current HSBC relationship manager is useless and doesn't answer her phone or email.

[MattyD803]

I decided to move to Metro Bank when RBS had to shed it's customers....simply because I got a nice little kickback for doing so, but I really wish I had chosen someone else to move across to at the time. They are an utter nightmare to deal with if you have any issues or queries and both their branches and call centres appear to be staffed by 18 year old morons who can barely string a sentence together and couldn't careless about resolving your issue - IME, one to AVOID.

I use Natwest for my other LTD company banking needs and in comparison, completely plain sailing if and when I do need to speak to them, not to mention their banking feeds can integrate with FreeAgent, which saves me a massive hassle.

[Geoffcapes]

It's a nightmare to open any business back account in the UK at the moment unless it's for one with a small turnover.

I fear you will have the same issues as myself when I tried last year.

I gave up in the end and opened an account in the USA.

[MYOB]

I use Anna - it’s an app based banking system. Very easy to access and open an account. Anna is not the actual bank but rather a facilitator.

[Deesee]

Sy1441 said:

So bit of background. I've set up a new ltd company which will invest in other business that deal in property (serviced accommodation, flips, BTL etc). This company likely won't own any assets per se but will rather have asset backed security for the loans it will make. The funds used to invest will come via a loan from my main ltd company in the telecoms sector. The value of investment is starting at £100k and will likely be multiples of this going forward. The interest from the loans will paid back to the new ltd company on a monthly basis.

I'm really struggling to find a bank that will let me open an account in the new ltd company name for this purpose. So far Startling, Revolut, Monzo and HSBC Kinetic have all declined the application. Any advice on banks that would let me open an account, my current HSBC relationship manager is useless and doesn't answer her phone or email.

Your trading company will lend money to another company, to lend money to a 3rd party/ies?

This for any bank is a KYC/Money laundering trip up.. and like any other 'black sector' (gambling/crypto/money lending), most Banks will not have the appetite to administer the account.

Current bank is your best bet, however do you have any experience in underwriting high risk asset loans?

It may be worth speaking to smaller bespoke funders (bridge co's etc) to see if they need any syndicated investors, they will have underwriting teams in place as well as KYC/AML and protect you from fraud.

NB, have you looked at doing this via a SASS?

Good luck!

[Sy1441]

Deesee said:

Your trading company will lend money to another company, to lend money to a 3rd party/ies?

This for any bank is a KYC/Money laundering trip up.. and like any other 'black sector' (gambling/crypto/money lending), most Banks will not have the appetite to administer the account.

Current bank is your best bet, however do you have any experience in underwriting high risk asset loans?

It may be worth speaking to smaller bespoke funders (bridge co's etc) to see if they need any syndicated investors, they will have underwriting teams in place as well as KYC/AML and protect you from fraud.

NB, have you looked at doing this via a SASS?

Good luck!

The investment and security is all fine and yeah the funds will be via loan back through the main LTD company SSAS. It's just the bloody bank account that's causing the issue, might just have to resort to a white lie on the activity of the company haha!

[Deesee]

Sy1441 said:

Deesee said:

Your trading company will lend money to another company, to lend money to a 3rd party/ies?

This for any bank is a KYC/Money laundering trip up.. and like any other 'black sector' (gambling/crypto/money lending), most Banks will not have the appetite to administer the account.

Current bank is your best bet, however do you have any experience in underwriting high risk asset loans?

It may be worth speaking to smaller bespoke funders (bridge co's etc) to see if they need any syndicated investors, they will have underwriting teams in place as well as KYC/AML and protect you from fraud.

NB, have you looked at doing this via a SASS?

Good luck!

The investment and security is all fine and yeah the funds will be via loan back through the main LTD company SSAS. It's just the bloody bank account that's causing the issue, might just have to resort to a white lie on the activity of the company haha!

Ok..

Cater Allen do a decent SASS account with a chq book..

Anyway, I’m glad you reposted as I went all former bank compliance etc

I would apply for a bank account with the purpose of investment of own real estate to let/sell for the SIC code, that should circumnavigate the compliance of money lending.

You will need some sort of dated side letter if they ever want to investigate (which they won’t), saying it’s some sort of JV or straight investment, just don’t use the word loan..