Business bank accounts for discharged bankrupts

You can still get a bank account if you have declared bankruptcy, although you won't get the same range of features.

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Business accounts without credit checks

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  • Free company registration
  • Free business account
  • Powerful features
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Having bad credit, whether because of a bankruptcy or because of other credit credit history issues, can make your financial life very complicated, and this includes opening a business bank account.

But there are a few banks and providers that will offer you option. It won’t be the same, but you should be able to get yourself a basic setup.

Business accounts with no credit check

No credit checks when you apply

Cashplus business

★★★★★

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Poor credit friendly

Instant notifications

Software integration
Opening a business bank account with bad credit can be complicated. Most banks will carry out a credit check when you put in your application and reject it if you don’t meet the requirements. All is not lost, though! Some companies, like Cashplus, offer banking services perfect for businesses who have a poor or no credit history. There are no credit checks when you apply. The only thing that needs to be verified is your contact details.
  • Have account up and running in 5 minutes
  • Overdraft option "Cashplus iDraft" once you're eligible
  • Currency cards to use overseas
  • Online services in addition to the mobile app
  • Charge to have your bank card issued
  • Traditional bank still needed for majority of your business finance needs
Account fee £0
UK ATM Charge Free
Account software integration platforms FreeAgent, Xero, Sage, Kashflow, Quickbooks, Clearbooks
UK transfer charge £0.20
Additional cards Up to 20 additional cards
Additional card fee £5.95
Credit check No credit checks to apply

Easy and quick to open, no credit check

Tide

★★★★★

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24/7 customer support

Instant notifications

Software integration
Tide is a fintech app which offers business accounts to small businesses and freelancers, hoping to relieve them of some of the financial stress that comes with a growing company. Tide’s business accounts come with a number of features that address some of the most stressful aspects of working for yourself and offer all of this for free.
  • 24/7 customer support
  • Categorised spending
  • FCA regulated
  • Quick set-up
  • No monthly fees
  • Easy to manage accounts and track payments within the app
  • Ability to set up direct debits and standing orders
  • Can receive online bank statements
  • No branches - all done via the web
  • Doesn't accept cheque deposits
  • No personal accounts
  • No international
  • Transfers or interest offered
Account fee £0
UK ATM Charge £1
Account software integration platforms Xero, QuickBooks, FreeAgent, ReckonOne, Kashflow, Sage
UK transfer charge £0.20
Additional cards 35 additional cards
Additional card fee Free
Credit check No - Tide performs an electronic check but no credit check

Can you get a business bank account after declaring bankruptcy?

Most traditional banks will carry out a credit check when you apply for a business bank account. That’s even if your business is registered as a limited company and is thus separate from your finances: they’ll check you as a director.

If you have recently had a bankruptcy, it will appear on your credit file, and your application might be refused.

It is still possible to get a business bank account after bankruptcy, thanks to a few providers such as Tide and Cashplus which carry out no credit checks when you apply.

Discharged vs undischarged bankruptcy

When you initially file for bankruptcy, a series of limitations are placed on your assets, and your existing bank account can be frozen or closed. You may get access to some of your money to meet your living costs.

While this procedure is ongoing, your bankruptcy is “undischarged”. While it is not illegal for you to open a new bank account during this period of time, it can be very hard because banks will not usually accept your application.

After one year, your bankruptcy will normally be “discharged”. You won’t get your old assets back, but if you come into possession of new ones, they will not be normally claimed.

Having your bankruptcy discharged will make it slightly easier for your and/or your business to open a new bank account, but you might still get refused by most traditional banks. That’s because a bankruptcy stays on your credit file for six years after being filed.

How to compare business bank accounts for discharged bankrupts

You need to look for business accounts that can be opened without credit checks, or ask your bank about so-called “basic” accounts. Here’s what you should consider when comparing options:

  • Fees. Some dedicated business accounts for people with bad credit might be more expensive. But they are not necessarily your only option, so it’s worth comparing a few to try and find a cheap one.
  • Limited choice. The range of accounts, features and perks available to you will inevitably be limited, so you might not be able to afford to be too choosy.
  • No credit options. Business accounts that can be opened without a credit check usually don’t include an overdraft facility. Don’t expect a business loan or a credit card offer either.
  • Brokers. When looking for business accounts for people with poor credit, you will likely come across brokers that will offer to take care of it for you in exchange for a fee. While that’s certainly an option, it will be more expensive, so make sure you’ve exhausted the alternatives first.
  • Ask about rebuilding your credit rating. If you can, it’s worth asking the bank you are considering about ways to rebuild your business credit rating. It may not be possible at the moment, but for example, will it at some point consider offering you some kind of overdraft facility?
  • Budgeting, invoicing, accounting. The best business accounts come with extra tools and features that will help you run your business. These can include features that will help you categorise your business expenses, integration with existing accounting software, an invoice service.
  • Using cash? Business accounts with no credit checks are often digital-only, so what if you frequently need to deposit cash? While it’s less than ideal, it’s not the end of the world. Tide for example allows you to deposit cash on your business account at the Post Office, in exchange for a pretty reasonable fee.

Pros and cons of business bank accounts with no credit checks

Pros

  • It’s easier to get accepted, even if you declared bankruptcy in the past.
  • You will get all the basic features that allow your business’ financial life to function, from a debit card to the ability to make and receive bank transfers.
  • It may be quicker to open and set up compared to a standard business account.
  • Some do actually offer a pretty decent range of features that can help you run your business.
  • It’s a first step towards rebuilding your business credit score.

Cons

  • Expect a limited range of options and features.
  • You won’t be able to get an overdraft.
  • Some accounts for businesses with bad credit may come for expensive fees.

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