Banking UK LTD Startup Difficulties and Shock

[soly20]

Hello again. I believe I posted a few weeks ago about having difficulties opening up a bank account for a newly formed LTD. I am a UK resident with a foreign passport. I got rejected by most banks including my personal account bank, Barclays.

I tried again with Barclays and somehow the accepted to open an account for me. I was so happy. I immediately deposited £5,000 into the account in anticipation to start buying some office supplies and paying off some bills i had.
However, to my surprise,10 days later, I received a letter by mail from Barclays telling me that they decided to close my business account in 2 months. I was given no specific reason, only directed to some points in the account opening agreement pointing out some vague stuff about their ability to close any account whenever they want.

It is important to note that in those 10 days, there was no activity other my £5,000 deposit into the business account from my personal account at Barclays. No other bank accounts were involved, no "weird" transactions or cash withdrawals, nothing whatsoever!

I am shocked and disappointed. I thought the UK was business friendly but so far it feels completely the opposite.

Any thoughts or experiences similar to mine?

BTW, I cannot use the usual EMIs since my work will involve international transfers andI will require the IBAN be in the name of my company so that I can receive payment.

In my desperation online, I found 3s.money. Has anyone had any experience with them? Is there anything I should be aware of with them?

Thank you in advance.

S

 

[Sols]

Nowadays, most EMIs offer dedicated IBANs in the name of your company but for high-risk businesses, many are limited to SEPA/EUR and cannot offer SWIFT or other currencies.

3S does not have a very broad risk appetite. If you do anything risky, they might not be the right partner for you.

What do you do?

 

[manukahoney]

Maybe Revolut? They give you both local UK bank account and IBAN for international transfers. And account opening is a very simple procedure, all done remotely.

 

[rowena]

BTW, I cannot use the usual EMIs since my work will involve international transfers andI will require the IBAN be in the name of my company so that I can receive payment.

This is exactly what EMIs provide

In my desperation online, I found 3s.money. Has anyone had any experience with them? Is there anything I should be aware of with them?

I don't know your business but if you're not dealing with high-risk transactions then don't waste time with 3s.money. They rip off, their onboarding starting from 1000-2000 eur for low-risk businesses

UK LTD is easy to open an EMI account. Check those alternatives:

TransferWise Business (Best)
Paysera
Revolut
Monese
Starling
Monzo

 

[soly20]

Nowadays, most EMIs offer dedicated IBANs in the name of your company but for high-risk businesses, many are limited to SEPA/EUR and cannot offer SWIFT or other currencies.

3S does not have a very broad risk appetite. If you do anything risky, they might not be the right partner for you.

What do you do?

Hi Thanks for your reply. I sell medical devices. I don't think this is a "risky" business.

 

[soly20]

Maybe Revolut? They give you both local UK bank account and IBAN for international transfers. And account opening is a very simple procedure, all done remotely.

I applied for Revolut a month ago and the app is still saying "Verifying Documentation" "Verifying Business details" "Verifying business owners" although it says "Identity verified". No updates or follow up questions for about a month now.

 

[soly20]

This is exactly what EMIs provide


I don't know your business but if you're not dealing with high-risk transactions then don't waste time with 3s.money. They rip off, their onboarding starting from 1000-2000 eur for low-risk businesses

UK LTD is easy to open an EMI account. Check those alternatives:

TransferWise Business (Best)
Paysera
Revolut
Monese
Starling
Monzo

Hi, thanks for your reply.

Transferwise Do they have any country restriction? Do they provide your own IBAN for incoming transfer or clients need to send money to third party with a reference to my business account?
Paysera Never tried. Will look into now.
Revolut, mentioned above. I applied for Revolut a month ago and the app is still saying "Verifying Documentation" "Verifying Business details" "Verifying business owners" although it says "Identity verified". No updates or follow up questions for about a month now.
Monese Same question as Transferwise.
Starling Rejected 3 times so far, no reason given.
Monzo Same question as Transferwise.

 

[Martin Everson]

I am a UK resident with a foreign passport.

Whats your passport?

 

[soly20]

Whats your passport?

Lebanese

 

[rowena]

Your passport is increasing your risk level but still, you should able to open an account with TransferWise. If they reject you, then continue with the next EMI in my list

And yes you will have your own IBAN, under your company name.

 

[soly20]

Your passport is increasing your risk level but still, you should able to open an account with TransferWise.

And yes you will have your own IBAN, under your company name.

Thank you. I am setting up an account with them now. i sent them a proof of my ID (BRP Card) and now waiting for their verification process! I hope this works.

 

[Martin Everson]

Lebanese

Ok your gonna have problems with discrimination with that passport period. Maybe use a UK driving license or similiar for photo ID in future.

 

[soly20]

Ok your gonna have problems with discrimination with that passport period. Maybe use a UK driving license or similiar for photo ID in future.

I am beginning to think you are right about discrimination, although i thought the UK was way past that. I am going to try to use my BRP card. I can't apply for a driving license till May. Which I will do.

 

[Martin Everson]

I am beginning to think you are right about discrimination, although i thought the UK was way past that. I am going to try to use my BRP card. I can't apply for a driving license till May. Which I will do.

There was a couple of other UK resident guys on here who had similar problems and reached out to me and couldn't understand why they were getting rejected and wanted recommendations. One finally told me they had Syria passport and the other Iraqi passport but both had lived in UK for years . Both thought that it didn't make a difference....sadly is does .

P.S I don't want this to get poltical but you know exactly what I am talking about and it has nothing to do with sanctions.

 

[soly20]

There was a couple of other UK resident guys on here who had similar problems and reached out to me and couldn't understand why they were getting rejected and wanted recommendations. One finally told me they had Syria passport and the other Iraqi passport but both had lived in UK for years . Both thought that it didn't make a difference....sadly is does .

P.S I don't want this to get poltical but you know exactly what I am talking about and it has nothing to do with sanctions.

I know what you are talking about. What is my way out? Just avoid using my passport as means on ID?

For personal account, I had no problems however all the problems show up once i apply for a business account.

 

[Martin Everson]

I know what you are talking about. What is my way out? Just avoid using my passport as means on ID?

Wait for your driving license and try not to get rejected from every EMI you could potential like using. Have you tried Cashplus Bank yet?

For personal account, I had no problems however all the problems show up once i apply for a business account.

Yup that's the way it works with opening a business account. Sad but once your passport comes across a compliance officers desk you end up in a basket alongside Nigerians, Iranians etc despite living in UK. Don't feel defeated and keep trying different banks and EMI maybe even Bank of Beirut in London will be more understanding.

 

[soly20]

Wait for your driving license and try not to get rejected from every EMI you could potential like using. Have you tried Cashplus Bank yet?



Yup that's the way it works with opening a business account. Sad but once your passport comes across a compliance officers desk you end up in a basket alongside Nigerians, Iranians etc despite living in UK. Don't feel defeated and keep trying different banks and EMI maybe even Bank of Beirut in London will be more understanding.

I already opened up with cash plus but they don't give your own business IBAN, you need to use "cashplus" as the beneficiary and they have a small list of country they accept payments from, No MENA countries.

 

[soly20]

I just went on Bank Of beirut website, they don't seem to have business current accounts. Does anyone know if they do?

 

[Martin Everson]

and they have a small list of country they accept payments from, No MENA countries.

Wait you want to receive from MENA countries also? Forget it then sadly. You would be way outside most UK small banks, EMI's risk appetite for a new business account.

I just went on Bank Of beirut website, they don't seem to have business current accounts. Does anyone know if they do?

Best to ask them directly but maybe somebody else knows.

P.S If you find a bank in UK that accepts new business accounts for even 50% of MENA countries then please ping me and let me know. Thanks.

 

[soly20]

Wait you want to receive from MENA countries also? Forget it then sadly. You would be way outside most UK small banks, EMI's risk appetite for a new business account.



Best to ask them directly but maybe somebody else knows.

P.S If you find a bank in UK that accepts new business accounts for even 50% of MENA countries then please ping me and let me know. Thanks.

OMG. I feel so demoralized now! There are a lot of UK companies that specialize in MENA sales. Why would the bank not accept? Dubai will be the most prominent client to be honest. It's not like my company is offering a "service". There are actually products purchased and invoice/shipped to these countries.