home loan finance blog
If you’ve had more than your fair share of financial knocks and scrapes in life and you’ve been made bankrupt or you simply have a poor credit history you’ll know that being in such a financial position is not only emotionally very difficult and stressful, it can also lead to you living in a catch 22 situation where you cant even establish a new business or get a new business bank account to enable you to trade and rebuild your professional reputation and financial standing.
There are however excellent legitimate offshore options for bankrupts and those with poor credit history because although youre bankrupt in one country, that financial label and unfairly associated stigma does not travel outside the borders of the country in which you have been declared.
So, if youre in a position where you want to start a new business or resume contracts where you left off, where you want to open a bank account to receive cheques and payments for work undertaken and completed and everywhere you currently turn youre faced with closed doors and Im sorry, we cant help you type rejections, its time to turn your own back on so called helpful banks and institutions who only ever help those who can already help themselves and look at the offshore world.
First things first you need to know that it is 100% legal for you to go offshore. Secondly heres an example scenario of when you could go offshore and how you could go offshore: –
Example Scenario
You have been declared bankrupt because clients bounced cheques on you and failed to pay you for work you had undertaken.
You now have a new client base and have orders open for which you will be paid in part up front thus giving you the capital you need to get started.
You can no longer be a director of a new company in your home country.
Without a company you cannot open a business bank account.
You cannot risk using your personal account for these transactions.
Example Solution
You could immediately establish an off-the-shelf company offshore and open an offshore business bank account in the name of the company.
You can use the company to trade through and raise invoices from, you can use the bank account to send and receive payments.
Hey presto youre back up and running!
Just remember that you need to choose a reputable offshore tax haven that your clients wont be suspicious of or have black listed in their minds as a location used by dodgy business persons!
Additionally if you use an offshore company incorporation service provider you should be issued with a 100% money back guarantee that if they cannot open you an offshore business bank account in the name of your company they refund all monies paid up front to them – because opening an account can be tricky for some service providers and you do not want to be left in the position where you have a company to trade through but no account to receive payments into.
And finally, remember also that by going offshore you cannot evade taxation. Where a reporting requirement exists in your own home country you are legally obliged to abide by that reporting requirement.