While setting up a limited company is a surprisingly quick process, opening the necessary business bank account can take a lot longer. Not anymore! Mortgage Consultant, Pete Barnes, explains how one high street bank has just changed the game for property investors.
You’ve set up your new Special Purpose Vehicle (SPV) limited company and are ready to purchase your first buy to let property through it, but there’s a problem. You’ve still got to open a business bank account for your new limited company, which, rather than being an overnight job like registering on Companies House, is going to take a few weeks.
This scenario is something we often encounter, and it’s frustrating for clients as it holds up the process and can mean they lose the property they wanted. In the current climate, where the high street banks are trying to manage caseloads with staff still on furlough, the delays have increased. I recently approached one high street bank about a limited company application and was told that they wouldn’t be opening any new business bank accounts until November! Knowing the client wouldn’t want to wait that long, I had to completely rule this lender out.
I was therefore thrilled to read about Metro Bank’s new offering: the ability to open a new business account in just 15 minutes, online!
Following a testing period in August, this superfast service is now available to all new SME business customers and can be applied for online or via your mobile. To ensure efficiency, you can verify your identity via selfie, and your company information is auto-filled using data from Companies House. Your debit card can then be either posted to you or picked up at your local branch, where you will also be assigned a business manager, on hand to offer support and guidance if needed.
In a changing world where remote and paperless working processes are becoming the new normal, this is a fantastic initiative from Metro Bank, and hopefully, more will follow. As more property investors turn to limited company structures for the tax benefits it can offer, initiatives like this will help streamline the whole set up process.
If you have any questions about investing in property via a limited company and the set up involved, please do not hesitate to contact me, Peter Barnes, on 01732 471641 or email firstname.lastname@example.org.