Hi SuzieQ

Unfortunately it will be at the discretion of the bank.

If there is another party involved and it's a limited company, depending on borrowing, overdraft etc for the new account, the risk to the bank is vastly reduced and is probably less of an issue. However we have heard of the bank saying no even when there is no conceivable risk.

It may be that the operation of the existing account would assist in any new application, however as detailed earlier, the bank will use their set criteria rather than any logical process. I assume both Directors will require to be signatories to the account, so I would imagine a credit check would be carried out on both.

Is there an opportunity to do a change of name to the existing account and add the new Director?

Mark

Mark,

Thanks for the quick response. My husband only wants a basic business account as he has never used an overdraft. He could ask the bank to change the name on the account and add the new director (who has a squeaky clean record). Is it likely that the bank would credit check him again? That is the thing that worries him the most.

Hi SuzieQ

I suspect they carry out a credit check as a matter of course. Unfortunately there appears to be no straight line as far as bank's decisions go, however I think the chances are greatly enhaced with the fact that there is an existing account with no overdraft or borrowing.

If the other Director was happy not to be a signatory, then that may enhance things further.

Sorry its not a definite answer, but it's murder trying to second guess bank's criteria.

Mark

I think the path with least risk would be to change the name on the existing account if it is possible and then add on the new director as a signatory. There's going to be a bit of hoping for the best involved though I think.

Hi SuzieQ.

Could the old company become the new company?

I doubt that it would be possible to switch a business account to a new unconnected company with a different company registration number.

Hi TDA

If the old company is being wound down, they could do a change of name and this should be easier to maintain the existing account to operate as the new company.

Mark

That's what I was thinking Mark.

Might be easier if the timing works.

Could be right. As mentioned earlier, sometimes it's a case of following the path of least resistance and hopefully it works out.

Mark

The new company is now registered at Companies House so its a discrete entity unconnected with the existing company. It may be a case of speaking to the bank and seeing what they say. After all, the company only needs a basic bank account!

Thanks all for your suggestions.