Sole Traders not welcome.. Discovery Card and Bank.. I think NOT

I encourage all business owners such as myself to not apply for a discovery card, or to make use of the upcoming discovery bank. Institutions should commend/assist business owners, not put endless amounts of red tape in their path.

I wanted to start making use of Discovery Miles, so decided to apply for a Discovery Card. The system automatically pre - approved me for a platinum card. This is when my problems started.

I am a sole trader, have been for over 8 years. The very definition of a sole trader is ‘ a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses. ‘

So this means that all my funds go into my business account. Being a sole trader I use my business account as my daily account as having two separate accounts isn’t always practical.

So when discovery asked me to send them bank statements, I sent through my ‘ business ‘ one, as I am a SOLE TRADER. I can completely understand if I was a PTY or CC and tried to use my business account, this could pose an issue.... But when you are a sole individual running a service business in your own name, this shouldn’t be an issue.

Discovery then came back and flat out said they will not accept a business bank statement. They told me to send them my personal bank statements.

I sent them personal bank statements, knowing full well they would not show a consistent income as like I mentioned I don’t use that account much.

They then asked for my IT34, which by it’s very nature is outdated information as the previous year’s income is used. My income increases dramatically year on year.

So I’m left with a situation where I have excellent credit rating ( I checked ) , I can more than afford a credit card, have successfully app**** for Wesbank financing, Vodacom contracts, lease agreements, FNB credit cards and the like, yet discovery tells me I have no funds ?

So tell me Discovery, what does one do in a situation like this ?? Why not rather state in your advertising that sole traders are not welcome.

I get that you need to vet clients who could pose issues, but when you have a client that:

- has exceptional credit according to the bureaus.

- can provide 12 + months of ‘ business ‘ bank statements.

- More than passes the affordability test

What is the problem here ?

And you expect young professionals to join your new bank? Yet it seems you still have loads to learn in understanding the needs of your clients.

I expect someone to clarify this