Bank Refusing to Support New Business Customer!

NiallCork

I was disgusted today when my Bank refused to grant me a Business Credit Card (for €1000 credit limit) when I set up a New Business Account with them stating I need to clear my personal one first!

I NEED a business Cr. Card as I will be doing a lot of work initially in the UK and needing to book flights, cars and accomdation to carry out my business!

By refusing me a Business Credit Card, which, by the way, MUST be set up for payment via Monthly Direct Debit from the business account (garaunteeing the bank payment or at least direct control of the card), I cannot not start work as I cannot book my flights, accomodation and car. Therefore, I cannot earn money in my new business and in turn I cannot pay off my existing personal one, becuase they are making it impossible for me to EARN money!!

I thought the banks (who are now owned by US the tax payers!!) were suppose to be there to support new businesses!?

I am soooooooo mad I wish I could just get up and leave this country. The Banks ruined Ireland and now they won't even support the people who are trying to do their bit to re-build it!!

As we say here in cork...The Langers!!! :mad:

MagicMarker

Why would they give you a new credit card if you owe money on your personal card?

NiallCork

I have come to an arrangement to pay back the personal one seperate to this application. Why would they not support my new business with gauranteed work and income to allow me to earn money to make repayments on my personal one faster!?

It is totally illogical! I would say something if I was looking for a €20k limit...I am looknig for €1k...on Direct Debit against the company account!!

Doesn't make sense to me!

PCPhoto

so the bank wants you to get your finances in order before they will give you money...not a whole lot wrong with that is there ?

I understand your frustration with the banks not willing to hand out money - but if you look at it from their point of view ... someone sets up a business account and without much proof of how successful the business will be the business is asking for credit - pretty much straight away.

most businesses fail because of lack of funding - if you had done your research in advance of setting up the business you would know you should have enough money to bankroll yourself for a few months.

Save your money from business transactions - and use the banks only when necessary.

NiallCork

I appreciate your comments guys. I have done (and provided the bank with) Cash Flow Projections, and sales pipe line, including contracts for work...not everyone can get their hands on the kind of money they need to support them in the early days of business.

I agree with you though, if I thought I could run my business without any interaction or reliance on a bank, I would...

The main point I'm trying to make is that, we gae them BILLIONS under ageement they would start to support SME's. I have a track record in business and not just some schmuck off the streets starting out...

Anywho...I not going to let the LANGERS get me down anymore...I will make the business work and I will not give any of that business to this particular banking institution!

micdug

You don't "NEED" a credit card. Why don't you do what pretty much everyone else does.... buy using your personal credit card and expence it. I suspect the reason for this is that your personal accounts are not in good order. How do you think people who work for businesses pay their bills? Very very few people get company credit cards and if they are, they are usually given debit cards.

The very sensible reason why the bank will not extend a CC for a new business is that with a personal CC you are personally liable for debts incurred wheras with a company CC the bank is essentially on the hook. Regardless of the 1000e limit there are plenty of ways to charge a lot more to the card and you can fold the business with no personal liability for the CC debt. I also suspect that your business is consultancy or contracting, a business with no assets and usually 0 day notice regardless of your "projections".

Just to be clear - the money put into the banks is our money, not yours, and projections etc are exactly that, what might be. Banks still have a responsability to be prudent. I'd strongly urge you to correct your attitude. Setting up a business is hard and the banks fiduciary responsability is to their shareholders (us) in the first place, not issuing bad loans. Perhaps if they were this prudent ten years ago we would not be in this state. In this case I fully support the Banks prudent approach.

Eoin

Moved to Entrepreneurial & Business Management from work/jobs.