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Banks and telcos really don’t like new businesses

September 7, 2011

Banks and telco providers really don’t like new businesses very much.

When I set up Explore Communications last month, I opened a business banking account with a view to ensuring that all my business transactions were kept separate from my personal ones. The initial experience I had in setting up the account was an ordeal (see It’s the Little Things …), but I was astounded that the bank would not give me a business credit card, until I had been in business for at least two years. However, they had no problem giving me a cheque book (for what it’s worth).

I also just signed up online to a plan with a mobile carrier, and selected the option to connect as a registered business. Unfortunately, when it came to completing the date of incorporation and commencement of operation for Explore Communications, it was impossible to select ‘2011’ as the year. By default, I assume that the requirement is a minimum of 12 months for the business to have been operating.

Both situations are unfair and unrealistic. It’s pretty hard for a small business to operate without a mobile phone and credit card, and by forcing people to use their personal phone and credit card accounts for business activity adds complexity to financial arrangements that a new business can definitely do without!

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