Ltd company - No Debit card issued?

Kersh · 22-11-2011 01:07AM #1

I just recently openened a business bank account (AIB) for my Ltd company. The bank say they dont issue Ltd companies with a Visa Debit card.

But i want one in order to pay monthly recurring fees that are currently on my private credit card and debit card. I dont want a business credit card (they wont give me one anyway) as I dont want to run the business off credit. I would like everything to come straight out of the account.

Why wont they give a debit card, and does anyone know of a bank that does issue them to Ltd companies?

Thanks for any replies.

srsly78 · 22-11-2011 09:35AM

I had same trouble with BoI. Couldn't get a laser card, only a credit card (debit card coming soon). Had to sign personal guarantee to get it, lots of hassle even tho company has wads of cash.

jmcc · 22-11-2011 10:35AM

With the state these banks are in, they should be signing personal guarantees with you for the money you have on deposit. If they don't cooperate - change to a bank that will supply your business with what it needs.

Regards...jmcc

Bandara · 22-11-2011 10:50AM

Boi and aib give business laser cards which will soon become visa debit cards with these banks

Homer · 22-11-2011 12:16PM

I was given a business visa, however it is in fact a visa debit. So, at the end of the month whatever amount is on the card gets debited from the business account so it is effectively a laser with a small credit facility!

TheCostumeShop.ie: Ronan · 22-11-2011 03:31PM

All business cards are usually settled at the end of every month, usually start ups get very low limits till they have been trading for six months but you should be able to convince your bank manager to give you a card and then you can load cash onto it in advance to cover big payment.

Sounds like your bank isn't supporting you though, you should have met with the account manager and only opened the account on the agreement that they would be able to provide you the basic requirements Credit Cards, free banking etc.

smeharg · 22-11-2011 03:48PM

Kersh wrote: »

But i want one in order to pay monthly recurring fees that are currently on my private credit card and debit card.

Why don't you just have the company pay you a salary to cover these?

If they're private or personal expenses you shouldn't really be paying directly from the company.

Alternatively, you could just set up direct debits on the company account. You'll have to go through the same process to switch cards anyway.

TheCostumeShop.ie: Ronan · 22-11-2011 03:56PM

smeharg wrote: »

Why don't you just have the company pay you a salary to cover these?

If they're private or personal expenses you shouldn't really be paying directly from the company.

Alternatively, you could just set up direct debits on the company account. You'll have to go through the same process to switch cards anyway.

Salary would be a poor use of tax planning. You would pay income tax on it and then not claim back the corporate taxes and VAT if registered.

OP you could just expanse in your personal card, easiest solution could be to get a second personal card which you use for only businesses expenses.

smeharg · 22-11-2011 04:14PM

TheCostumeShop.ie: Ronan wrote: »

Salary would be a poor use of tax planning. You would pay income tax on it and then not claim back the corporate taxes and VAT if registered.

OP you could just expanse in your personal card, easiest solution could be to get a second personal card which you use for only businesses expenses.

If they are personal expenses they'll be taxable anyway and the VAT won't be reclaimable. There would be an allowable deduction for corporation tax whether it is salary or reimbursed expense. There would be no CT deduction for personal expenses.

If they are business expenses the company could reimburse them tax free. The VAT wouldn't be reclaimable as any VAT invoices would not be in the company name.

If they are business expenses put them through the company. If they are personal keep them personal.

ScouseMouse · 22-11-2011 04:25PM

I'm with Ulster Bank.

My wife and I have company credit cards which attract no interest as any balance is cleared by DD at the end of each month.

Needed a personal guarantee for it and they even did a search on me with the ICB.

Kersh · 22-11-2011 06:47PM

Well my personal account has been with UB for years . The company is a startup, so I rang UB and AIB and AiB got back within a few hours . . Im still waiting on UB to ring back after they said they would, 3 weeks ago.

So I went with AIB.

The debit card is to pay ongoing monthly E-payments such as Goldfish.ie for voip, my monthly webhosting charges etc. A debit card would be perfect, but the guy who opened the account at AIB said no, they dont give out debit cards to Ltd companies. I dont see what the issue is with it, the money is there in the bank . . no guarantees needed. No credit required!

And like I said in the op, I really dont want a credit card. Besides, He said I might qualify for a credit card if I bring in my business plan and go through it with him etc etc, but since I really dont want one, I aint going doing that.

Im gonna contact other banks and switch to whoever gives some sort of debit card.

Helping startup business my ar5e.

Tangled · 22-11-2011 08:43PM

I've never heard of a business debit card tbh, it's standard practise with a business Visa that the balance gets cleared at the end of each month by DD.

thecommander · 22-11-2011 08:55PM

Kersh wrote: »

I dont see what the issue is with it, the money is there in the bank . . no guarantees needed. No credit required!

If AIB don't do one, then they don't do one. Whining about it won't change the fact.

I opened a BOI account last week and they offered me a cash card, not sure if it was Laser or Visa Debit, or if it was just a ATM card. Call a business manager and ask.

or

Get a company credit card, cleared at the end of the month, so it's not really running a business off credit. No interest either.

air · 22-11-2011 08:58PM

I have a Visa debit on an UB business account as well as a Mastercard which gets cleared each month. I generally use the debit card for stuff that has vat reclaimable on it and the Mastercard for purchases that don't (international or intra eu stuff).
I find this makes it that bit handier doing up the accounts. I think UB's online offering is superior to that of AIB in terms of data export etc.
I wasn't asked for any kind of guarantees on the cards but have the account 4 years or so.

Ltd company - No Debit card issued?

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