Bad Credit Business Bank Account - How To Qualify For One?
A bad credit business bank account is something that would help many business owners who have gone through a rough patch financially to get back on the right track to doing business.
To get approved for business checking or savings accounts, most banks will run both a credit check and ChexSystems or Telecheck account review before approving a new application. Sometimes, it may be a problem with a bad credit score, and sometimes it could be a problem of having a ChexSystems/ Telecheck record, or both.
Bad Credit Bank Accounts For Businesses Are Less Common Than For Individuals
While the concept of a bad credit business bank account is considered a way for companies with bad credit to get approved for a bank account, it is not a widely practiced concept. Unlike for individual accounts where second chance checking accounts are easily approved, banks tend to be more stringent when approving new business account applications.
To have bad credit that disqualifies a business from something as essential as a checking or savings account is the last thing that any small business owner wants to have.It becomes really frustrating for any businessperson to continue in business without any kind of checking or savings account. For example, even the simple act of opening a merchant account to accept credit card orders usually require a checking account. In this challenging situation, the best thing to do is not to panic, but to take a step back and consider the options.
Discussing Your Options
First of all, it will help to get clarity about your current situation. You may already have a good idea why it is difficult for your business to get approved for a business bank account. If not, you should at least have a reasonably clear idea what your credit score is, and if you've have previous banking transactions that could have gotten your business a negative ChexSystems record.
With this clarity, it's time to approach the branch managers or several local banks or credit unions and explain the situation to the branch manager or bank officer on duty. It's not advisable to try to hide the facts. The bank will find out sooner or later if your business has bad credit when they process the application. The purpose of getting into touch with the bank manager to see if there is any way they could get your application through.
Some banks have stiffer rules and procedures, while others can be more lenient. Being able to get face time with a manager will also allow you to explain the nature of your business and how you could be a good customer for the bank. Be prepared that it could take approaching a number of banks before you will be able to gain approval.
One bank that is known to be very friendly towards offering bad credtit business bank accounts is Woodforest Bank (www.woodforest.com). They are in a number of states in the Midwest, South and East. States like Alabama, Georgia, Missouri, Kentucky, Louisiana, Texas, Maryland, Illinois, Indiana, Ohio, Pennsylvannia, New York, Virginia and more. They have 750 branches located in 15 states, many located inside Walmart superstores.
Stop Gap Measure: Prepaid Business Debit Card
In the meantime, a stop-gap measure may be to get a prepaid business debit card. These are VISA or Mastercard debit cards that you load money into for management of expenditures. They are accepted at a lot of stores and can be used for online purchasing transactions at most sites. Some of them also include online Bill pay options and check writing capablities. A lot of these cards allow account activities to be monitored online. While not exactly a bank account, many who have faced difficulties in obtaining a bad credit business bank account have found these prepaid business debit card cards helpful.
Approval for a bad credit business bank account is something that most who are caught in a bad credit situation or ChexSystems record want. Unlike for individual accounts, there are less banks openly offering bad credit business bank accounts. The reality is that it will require some legwork and approaching bank personel for discussions to make it work. No doubt, it is a perplexing situation to be caught in, but with patience and persistence, you may find a solution sooner than you think.
As an alternative to a conventional checking account, consider a prepaid Visa card account with no ChexSystems requirements. It works just like a checking account, allowing for direct deposit of paychecks and online billpay (one-time or recurring payments). You can deposit cash into the account from 135,000 retail locations nationwide. In addition, the card can be used anywhere Visa is accepted. Click to learn more: The Perfect Alternative to a Checking Account!