Best business bank accounts for bad credit and no credit check

If you have a less than perfect credit history, it's still possible to get a business bank account.

Promoted
Cashplus Business Go Bank Account logo
Business account with no credit check
No monthly fees
Fully regulated British bank
24/7 online and app access
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★★★★★
1,100+ customer reviews
Best for small businesses
Revolut Business Basic logo
Finder Award
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No monthly fee
Flexible account options
Mobile app with lots of good features
Ability to issue cards to all employees
Promoted for startups
Tide Free logo
Finder Award
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Free £50 voucher
24/7 customer support
Categorised spending
FCA regulated
Promoted for international payments
Monzo Business Lite logo
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No monthly fees
Fee-free spending abroad
Custom payment links
Pots to separate money
Promoted for no credit checks
Small Business Account logo
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No monthly fee for 3 months
Quick application process
No credit check required
Cashback rewards available on the associated Mastercard
Table: sorted by promoted deals first
1 - 15 of 15
Name Product Account fee Bank transfers Requires credit check Arranged overdraft Accounting integrations Account management Key benefits Business bottom txt Link
OFFER
Monzo Business Lite
Free
Free
N/A
Online & app
Get a free business account with no monthly fees.
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View details
OFFER
Multi-Currency Business Account
Free
Free
Xero
Online & app
Earn 10% cashback on your first $1,000 of international transactions with Airwallex (T&Cs apply)
Go to site
View details
Finder Award
EXCLUSIVE
Tide Free
Free
£0.20
Free if both accounts are with Tide
Clear Books, FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero
Online & app
Get an £50 voucher when you open a Tide business bank account using the code £50VOUCHER
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View details
CASHBACK
ANNA Pay As You Go
Free
£0.20
per transfer
Clear Books, FreeAgent, QuickBooks, Sage, Xero
Online & app
Earn 1% cashback for paying with your ANNA card in selected categories.
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View details
OFFER
Cashplus Business Go Bank Account
Free
£0.30
Free for first 3 payments sent each month (£0.30 for every transfer thereafter)

By invitation
Clear Books, FreeAgent, KashFlow, QuickBooks, Sage, Xero
Online & app
No annual or monthly fee when you apply using the Finder link
Go to site
View details
Finder Award
OFFER
Revolut Business Basic
Free
5/month then 20p per transfer
FreeAgent, Xero
Online & app
Sign up today and unlock 1 month of a paid plan without subscription fees. T&Cs apply.
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View details
Monzo Business Pro
£5 per month
Free
FreeAgent, QuickBooks, Xero
Online & app
6 months free of Xero accounting & first month of Pro subscription fee free
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View details
Finder Award
OFFER
Tide Plus
£9.99 per month
Free
20 free per month
Clear Books, FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero
Online & app
Get 3 months free with our code, FREEPLAN - Available for a limited time only.
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View details
FREE TRIAL
Small Business Account
£12.50 per month
(waived in first 3 months)
From £0.30
FreeAgent, Sage, Wave, Xero
Online, app & phone
No monthly account fee for the first three months
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View details
FREE TRIAL
ANNA Business
£14.90 per month
(waived in first month)
Free
50 free bank transfers per month (20p per transfer after that)
Clear Books, FreeAgent, QuickBooks, Sage, Xero
Online & app
Earn 1% cashback for paying with your ANNA card in selected categories.
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View details
Revolut Business Grow
£19 per month
100/month free then 20p per transfer
FreeAgent, Xero
Online & app
Sign up today and unlock 1 month of a paid plan without subscription fees. T&Cs apply.
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View details
FREE TRIAL
ANNA Big Business
£49.90 per month
Free
Unlimited free bank transfers
Clear Books, FreeAgent, QuickBooks, Sage, Xero
Online & app
Earn 1% cashback for paying with your ANNA card in selected categories.
Go to site
View details
Finder Award
CASHBACK
Tide Cashback
£49.99 per month
Free
150 free per month
Clear Books, FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero
Online & app
Get 3 months free with our code, FREEPLAN - Available for a limited time only.
Go to site
View details
Revolut Business Scale
£79 per month
1000/month free then 20p per transfer
FreeAgent, Xero
Online & app
Sign up today and unlock 1 month of a paid plan without subscription fees. T&Cs apply.
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View details
OFFER
Business Account For Start Ups
£8.50 per month
(no account fee for the first 12 months)
Free
(First 100 electronic payments out free per month; 20p thereafter)

N/A
Online, app & phone
Digital banking with no account fee for 12 months*. Free accounting software available to business account holders. T&Cs Apply
*After 12 months, there’s a monthly fee of £8.50. Some fees and transaction charges will apply as soon as the account is open. This offer only applies to the business’s first current account.
Free accounting software available to business account holders. You must be registered for Online for Business or Commercial Banking Online. UK based businesses only.
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Can I open a business bank account with bad credit?

The answer is yes. If you have a poor credit history then it’s likely you’ll find it more difficult to gain access to some financial services, including a business bank account, but it is possible to open one.

You may have a bad credit score for a number of reasons, including missing payments on any bills you owe, or defaulting on mortgage, loan or credit card repayments. Your score will also be badly hit if you’ve been declared bankrupt or have had a county court judgement (CCJ) made against you or your business.

But there are measures you can take to increase your chances of being approved for a business account if you have bad credit, as well as some providers who offer business accounts without conducting a credit check (more on both of these things below).

How to prepare for a business account application

To give yourself a better chance of being accepted for a business bank account, you can take several steps to improve your credit score:

1. Make sure you’re registered on the electoral roll.
2. Check your credit report to ensure there are no mistakes on it.
3. Pay back any credit you owe on time.
4. Pay off as much as you can on any existing loans and credit cards.
5. Don’t make too many credit applications in one go.
6. Don’t apply for credit again immediately after being rejected.

How do I open a business account?

You’ll need to choose a banking provider to go with and apply to them individually (although don’t make lots of applications at the same time, as multiple rejections will further harm your credit score). Each bank will have its own process (many are online) for opening a business account and will require different documentation, including things such as your personal details, ID verification and the name of your business.

Some providers may also go further, conducting credit checks and asking you additional information about your business and its finances.

It might be worth approaching your current banking provider first (a bank that you have other financial products with, such as a personal current account or credit card). If you’ve used any existing accounts sensibly, your bank will be able to see this and take it into account when looking at your new application.

If you have a bad credit history, another outcome here is that your provider may offer you a basic version of a bank account first, to get you started on rebuilding your credit score. You can then look into moving to a full business account at a later date.

For more information on the range of business accounts that exist in the UK, visit our business banking section.

Is it possible to open a business account without a credit check?

Yes, it is possible to open a business bank account without a credit check. Examples of providers that offer this are Cashplus and Card One Money. The process is usually fairly quick, with approved accounts opened in anywhere from a few minutes to a few hours.

This type of banking provider will still require some contact details from you and will check that your business is registered, but they won’t conduct a credit check.

However, do bear in mind that business accounts which target banking customers with a poor credit history do often come with higher fees than some of the other business accounts on the market.

What about business accounts for bad credit at mainstream banks?

If you have a poor credit history, it’s likely to be more difficult to get a business account with a traditional high street bank, as they don’t tend to offer business accounts that cater for people with bad credit.

There’s a raft of new digital-only business account providers in the UK now, who don’t conduct credit checks when you apply. So it’s worth looking at those as an alternative to the big banks (although be sure to do your research on any account fees that are involved).

What can I do if I have been refused a business account?

If you’ve been refused a business account, it’s worth re-visiting your preparations to make sure you have all your finances and documentation in order. This includes making sure your business is registered, that you personally are on the electoral roll and that you’ve done all you can to improve your credit score. As mentioned above, if you haven’t already, you could consider approaching your existing bank to open a business account.

There’s also the option of going to a business account provider that doesn’t carry out credit checks at all, but be aware that the fees associated with these accounts are among the least competitive out there.

What credit score do you need to open a business account?

It is impossible to answer this question for a number of reasons.

First off, different bank account providers will have different limits when it comes to accepting applicants with low business credit scores. Also, these banks have a choice of different credit reference agencies using different algorithms to measure your score.

On top of that, your credit score is only one factor used to determine your eligibility for a business bank account. If your business scores well for other eligibility criteria, a bank may be more willing to overlook a poor credit score.

What is a soft credit check?

A soft credit check, or soft search, is a search on your credit file that won’t affect your credit score. Although a soft credit check will still be recorded on your credit report, it won’t leave a mark for other lenders to see, so it won’t affect your ability to get credit.

In comparison, a hard credit check, or full credit check, will leave a mark on your credit file which is visible to other lenders. Hard checks can have an impact on your credit score and lots of searches in a short space of time can make you look desperate for credit. This can reduce the chances of your application getting accepted.

How do digital-only banks compare to traditional high street banks?

One of the biggest advantages of applying for a business account with a digital-only bank is that a number of them won’t conduct full credit searches. This means that if you have poor credit, or your business simply hasn’t built up a credit history yet, a digital-only bank can provide an alternative to the big high street banks.

Digital-only banks also have many other advantages over high street banks. For a start, the application process is usually easy and straightforward, and often your account will be up and running the same day you apply. Digital-only accounts also tend to offer more innovative features compared to high street business bank accounts. For example, your account might link to accounting software or you might have access to budgeting tools.

However, bear in mind that because many digital-only banks don’t carry out credit checks, this means they also won’t offer an overdraft. In comparison, most high street business bank accounts will offer credit products such as an overdraft and business credit card.

How to get your credit back on track

If you have a poor credit history, the good news is there are plenty of steps you can take to get your credit back on track.

Prepare a solid business plan

Having a well-presented, thorough business plan will help to show lenders you’re serious about your business, have a good understanding of the financials and know where you want to take the business in the future. It should include an explanation of what your business does, financial projections and an overview of the market as a whole.

This step is particularly important if you’re opening an account with a high street bank as many will require you to have an appointment with a business adviser. If you’re opening an account with a digital bank, you’re unlikely to need a business plan, but having one can still help you and your business.

Check your credit report

The next step is to check your credit report as this will enable you to fix any issues before you apply for a bank account. If you spot any mistakes, such as an incorrect address or outstanding debt that you’ve since paid off, contact the credit reference agency as soon as possible and ask them to correct the error.

If you are unable to get a mistake fixed, you can add a Notice of Correction to explain what happened. This should be no more than 200 words but could be useful if you missed a payment due to ill health, for example.

It’s also a good idea to check how your address is listed on your report and make sure you copy this format whenever you apply for credit. It might seem minor, but even little things like this can cause problems.

Get on the electoral roll

It’s also important to check that you are listed on the electoral roll at your current address. Lenders use the electoral roll to verify your identity which can have a positive effect on your credit score.

Reduce your credit utilisation

Your credit utilisation ratio is how much of your available credit limit you’re using and the lower it is, the better, and the more attractive you’ll be to lenders. As a rule of thumb, it’s best to keep your credit utilisation ratio below 30%.

To do this, try to pay off some or all of your outstanding balances on credit cards, store cards or an overdraft at least three months before applying for a bank account.

Register with HMRC

Under current tax rules, you must register with HMRC within three months of trading. It’s also best to do this before you apply for a business bank account. If you don’t, there is a chance your application could be rejected, even if you’re applying for an account with guaranteed acceptance.

Pros and cons of business bank accounts for bad credit

Pros

  • Allows you to bypass a credit check.
  • Can be a quick process.
  • Can help to improve your credit score.

Cons

  • Must apply individually to protect credit score.
  • May be a basic account at first.
  • May come with higher fees.
  • Harder to secure with traditional high street banks.

Bottom line

It is possible to open a business account with bad credit, even though it won’t be as easy a task as if you had a good credit history. There are new financial providers (mainly digital-based), who specialise in offering these type of accounts and try to make the application process as seamless as possible. However, it’s still important to compare the account features and the fees involved, to make sure what you sign up for is the right business banking solution for your business.

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We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

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