Many people who begin a business by taking a loan from the bank are bound to fail in their enterprise sometime. They may have a damaged bank history behind their name. It might be possible, that they have taken a loan from the creditors and not been able to make regular monthly payments. Thus, they have defaulted in their monthly installments. The creditors, will initially send them reminders about it, but if it is not paid heed to, then creditors will declare them bankrupt and send these names to the companies who maintain a database for defaulters. Once your name reflects in that defaulter list, it is possible that banks will refrain from allowing you to open new accounts or give you loans for your further business ventures. It is not a good idea to run a business, without having personal or business accounts in the banks. If you have been in trouble with the database companies, then it will not be possible to estabilish any banking relationship for the next five years atleast.
There is still hope for such defaulters though. The option is known as 2nd chance banking. There are certain banks who are ready to give a second chance to people who cannot estabilish normal bank accounts. These accounts are called 2nd chance banking accounts because these types of banks forgive past banking experiences or do not take past banking history into consideration while choosing their account holder. 2nd chance banking accounts can be opened online too. There are certain websites which help you to find the banks that offer these types of services to customers. If you find a bank locally, it would be the best option for you. You can apply to the bank online by filling out an application form and then giving all your personal and financial details. The approval from the bank will be recieved by you within a day or so. You will definitely have to attend extensive interviews with the bank officials and discuss your past banking experiences with them. Even after all these long and detailed procedures, it is not guaranteed that you will be allowed to open an account with the bank.
If you do become the account holder of a 2nd chance account, then you should keep in mind that there are certain differences between a normal account and a 2nd chance account. There are monthly fees applicable to the 2nd chance account. This amount acts as the maintenance fees. Also, there might be certain cash withdrawal limitations too.