Business bank accounts for all

NatWest and RBS are to offer a business current account to all business customers irrespective of their credit standing. Aspiring entrepreneurs who have previously been unable to open a business account will have access to the everyday account services needed to help them run their business, with the exception of borrowing facilities.

Underlining the Banks' commitment to financial inclusion and entrepreneurship for all, NatWest and RBS are making available many of their products and services to those customers who otherwise might be ‘financially excluded'. The Foundation Account offers a cheque book, a cash machine and SOLO debit card, standing orders and direct debits as well as access to Internet, Telephone and mobile phone banking. Businesses that have started trading in the last 12 months will also qualify for an unprecedented two years free banking.

The new account will give enterprises a platform to build up an account history which will prove very useful when applying for borrowing facilities in the future.

David Frost, Director General of the British Chambers of Commerce, welcomed the announcement: "BCC welcomes this move by NatWest and RBS which will further encourage the spirit of enterprise in this country and may also turn around the fortunes of those enterprises previously thwarted in their attempts to obtain support for their business."

Steve Pateman, Chief Executive of Business Banking at NatWest and RBS, said: "We recognise that although there are many reasons why customers may have impaired or limited credit records, this does not mean that a new business venture cannot be successful - frequently they have learned valuable lessons from the experience. As the leading bank for small business, we work to encourage business ambition and support budding enterprises and as such NatWest and RBS will open accounts for customers with a limited or poor credit history on a credit only basis."

Andrew Donaldson, of Active Supply & Design, who set up his first business with help from The Prince's Trust, added: "There must be lots of good business ideas that never get off the ground because aspiring entrepreneurs can't find the right support. When I started out, an account like this would have been very welcome and I'm sure will be a major boost for businesses starting out today without the right credit history."

Entrepreneurs, previously unable to access a business current account service, can open a Foundation Account at any NatWest or RBS branch from 2nd June 2008.