Compare the best business bank accounts in the UK 2021

Best business bank accounts for bad credit

A poor credit history can have an impact on opening a business bank account. Fortunately, there are some banking providers who specialise in business accounts for those with bad credit or don’t conduct credit checks at all. You can compare a range of bad credit providers here.

Best business bank account for bad credit: Cashplus

★★★★★

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Poor credit friendly

Instant notifications

Software integration

• Why it’s great
• Pros/cons
• Details

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	£2.00
Account software integration platforms	Clear Books FreeAgent KashFlow QuickBooks Sage Xero
UK transfer charge	£0.30
Additional cards	Up to 20 additional cards
Additional card fee	£5.95
Credit check	No credit checks to apply

How can I find the best business bank account if I have bad credit?

• Are there credit checks? Some providers let you open a bank account without checking your credit history. Make sure you choose is one of them.
• Are you eligible? Your credit history may not be that important to these providers but there are other things necessary for opening an account. Check what the requirements are and see if you can apply easily.
• How is the account protected? Make sure your money is safe. Get to know which body the provider is regulated or protected by.

Best business bank accounts for small businesses, sole traders and freelancers

Small businesses and sole traders make up a huge part of the UK economy, and a growing number of banking providers are offering business accounts specifically tailored to their needs.

Best business bank account for small businesses, sole traders and freelancers: Tide

★★★★★

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24/7 customer support

Instant notifications

Software integration

• Why it’s great
• Pros/cons
• Details

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	FreeAgent KashFlow QuickBooks Reckon One Sage Xero
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

How can I find the best bank account for small businesses?

• What are the fees? You’re not a big company owner so you probably want to keep your expenses low. Find out if there is any fee for setting up and managing your account and how much you have to pay for each transaction.
• Can invoices be created directly from your banking app or desktop account? Being able to create new invoices and manage existing ones is important. Check if the bank account you’d like to open has this helpful feature.
• Are there any additional perks? Whether it’s free credit cards available for your employees or a discount on coffee supplies, it’s good to know what possibilities for saving money come with opening an account.

Best business bank accounts for startups

There are a lot of factors to consider when starting up a business for the first time, and banking is one of them. Spending time to find an account that has all the features you need at the right price point will benefit you in the long run.

Best business bank account for beginners and startups: Amaiz

★★★★★

Read review

24/7 customer support

Instant notifications

Software integration

• Why it’s great
• Pros/cons
• Details

Opening a business account is a new experience for company owners who are just starting out, but it shouldn’t be a daunting one. Amaiz is one of the new breed of challengers to offer a digital-only current account to sole traders and limited companies. You can open a business account in minutes through its mobile app – which also offers features that bring together banking, invoicing and accounting. Even better, you can sign up for a free trial before committing to any of the monthly pricing plans.

• Transparent charges - everything included in the monthly fee
• An app packed with features such as instant notifications
• Jar sub-accounts and the ability to create
• Customize and track invoices
• 24/7 customer support
• The ability to freeze your
• Card with a singular tap
• Quick to get your account up and running

• No integration with Sage or Xero
• No branches/face to face communication
• No overdraft feature or credit facilities available
• Extra fees to use the card abroad

Account fee	£0
UK ATM Charge	Free
Account software integration platforms	FreeAgent
UK transfer charge	£0.20
Additional cards	Only allowed one card at present
Additional card fee	N/A
Credit check	They conduct a soft credit check - they check your name against credit agencies, but do not report any of your information to credit score checking sites

How can I find the best bank account for startups?

• Is there any free banking on offer? If you’re going into business for the first time, some banking providers offer a decent period of free business banking with new accounts (though be mindful of what the costs may be after this free period ends).
• What tools come with the account? As a startup, you might be after a “one-stop shop” type of business account, so take a look at what features it has. Many accounts can now integrate with your accounting software, create and track invoices for you and even help calculate your tax bill.
• Are there any other financial services available? If you’re also looking for a business credit card, overdraft or loan, it’s worth checking which business banking providers offer those products as well.

Best business bank accounts for online banking

With bank branch visits on the decline and customers increasingly managing their money through digital channels, the range of features on offer through online banking has become a crucial part of any business bank account.

Best business bank account for app and online banking: Starling

★★★★★

Go to siteRead review

24/7 customer support

Instant notifications

Software integration

• Why it’s great
• Pros/cons
• Details

The era of banking in its traditional form is being surpassed. Digital banking is on the rise, offering customers 24/7 access to their bank accounts via apps and other types of online accounts. Thanks to that you can manage your money anytime you want and anywhere you are. What’s more, you can get instant notifications about the payments you made or received and, in many cases, sort your invoices quickly and easily. If you’re looking for the best user-experience, Starling may be the best option for you.

• Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm)
• Completely free UK current account opened and ready to use in 20 minutes
• Safe and secure
• Fully licensed by the FCA and PRA
• Free to use your card abroad including ATM withdrawals, splitting the bill made easy with "settle up" feature competitive and comprehensible overdraft fees
• Decent interest rate paid on current account balances
• Efficient app offering a range of good features such as budgeting tools and saving features
• Has a marketplace offering competitive pensions
• Mortgages and insurance from other growing fintech companies
• Teen account options
• 24/7 customer support (for all types of enquiries)

• Relatively new so does not offer every feature e.g. mortgages
• No bank branches, all done via the web
• Only available to UK residents

Account fee	£0
UK ATM Charge	Free
Account software integration platforms	FreeAgent Xero
UK transfer charge	£0
Additional cards	No additional cards
Additional card fee	N/A
Credit check	Soft search with no impact on credit score

How can I find the best bank account for online banking?

• How can I access my bank account on the web? Although slick mobile banking apps are a big thing right now, even in business banking, if you’re specifically after online banking make sure you can access your account on the web via a desktop computer or a laptop, and not just through a smartphone.
• What are the online banking features? There are lots of things you can do via online business banking, from making payments and setting up standing orders to calculating your expenses or sending out an invoice. Check that the account you select has all of the online banking features that you want.
• Are there any transaction fees involved? With business banking, it is common to be charged small transaction fees, even for making or receiving online payments. When choosing an account, give consideration to your online banking usage to make sure those small individual fees don’t add up to one big cost for your business.

Best business bank accounts for invoicing

Issuing invoices and getting paid is obviously vital to running a successful business. It’s now possible to create, send and keep track of invoices directly from some business bank accounts.

Best business bank account for invoice service: ANNA Money

★★★★★

Go to siteRead review

24/7 customer support

Instant notifications

Software integration

• Why it’s great
• Pros/cons
• Details

Invoices are crucial for keeping solid financial and accounting records. To invoice your company’s clients you can always do it the old-fashioned way and create them manually, using templates and sending the invoices out via email. It can be time-consuming though, and the last thing you want is making a mistake while creating them. To avoid that, choose a digital bank that offers accounting software and services that automatically generate invoices you can send to your clients. One such company is ANNA Money which can help you save time and avoid the stress of chasing payments.

• Ability to connect other provider accounts to the ANNA app through Open banking
• 24/7 support through the app aiming to give a response within 10 mins
• Fast set-up
• Invoice and expense services within the app
• No seperate fees for account activities solely the monthly fee

• No credit or overdrafts available
• Still require a traditional bank account for majority of your business financial needs
• No cash and cheque deposits
• Cannot be used in web browser

Account fee	£0
UK ATM Charge	Free up to £100 per month
Account software integration platforms	Xero
UK transfer charge	£0
Additional cards	1
Additional card fee	N/A
Credit check	Soft search with no impact on credit score

How can I find the best bank account for invoicing?

• What does the invoicing service include? Can you create and send invoices from the business account then track when payments come in and match them to your records?
• Is there 24/7 customer support? As a busy entrepreneur, you may be doing your invoicing in the evening or at the weekend, so if you run into any operational problems, it’s good to know there’s someone available to help you out.
• Is there a full range of other banking features? It’s great being able to run your invoicing from your business account, but if that’s its main feature, you may need to weigh up if the account has everything else you might need, such as international banking or the ability to make cash deposits.

Good for international payments

If you have customers or suppliers based overseas, then the ability to make or receive international payments from or to your business bank account will be an important factor.

Low currency conversion on international payments

Read review

Easy to open

Send money internationally

Create business invoices

• Why it’s great
• Pros/cons
• Details

Monese allows you to open multiple accounts with multiple currencies. International money transfers to 30 countries are permitted at a cheaper rate than high street banks. Your accounts are run through an app with useful budgeting software. You can swap between personal and business accounts seamlessly.

• Supported in 14 different languages
• Quick and easy to set up
• Budget management features offered in the app and savings pot feature
• Deposit cash into the accounts through post offices and paypoints (with a small fee)

• Only available to businesses registered in the UK
• Must have a personal monese account to get a business one
• Still require a traditional account for most of your banking needs

Account fee	£0
UK ATM Charge	£200 free monthly - 2% fee after
Account software integration platforms	N/A
UK transfer charge	£0
Additional cards	N/A
Additional card fee	N/A
Credit check	N/A

How can I find the best business account for international payments?

• International banking capabilities. A few of the newer or more basic business accounts don’t offer the ability to make or receive international payments, so if you need this functionally be sure to check before you sign up for an account.
• Fees. How much will your bank charge to make or receive overseas payments? There could be upfront charges as well as currency conversion fees to pay.
• Multi-currency accounts. A banking provider that lets you hold balances in different currencies, or one that offers different currency accounts linked to one another, might be a better bet if you’re going to be dealing with a high volume of international payments.

Good for opening an account quickly

If you need a business account in a hurry, or you just don’t want to be caught up in a lengthy application process, choosing an account that’s quick to open might be at the top of your consideration list.

10 minute online application

Read review

Software integrations

Multiple Company cards

Pay abroad like a local

• Why it’s great
• Pros/cons
• Details

Revolut places an added focus on international money transfers. With this account, you can send and receive funds in 28+ currencies at the real Interbank exchange rate. This account comes with an intelligent app that allows you to monitor your business income and expenses with ease.

• Flexible account options
• Mobile app with lots of good features
• Ability to issue cards to all employees
• Easy to apply
• Freeze card if lost or stolen
• Safe and secure
• Free purchases

• Free account does not include many free transactions
• All ATM withdrawals incur a charge
• Can't deposit cash or cheques into your account
• Not yet a fully fledged bank
• Currently unable to earn interest
• Direct debits only available for EUR accounts

Account fee	£0
UK ATM Charge	2% on all withdrawals
Account software integration platforms	Clear Books FreeAgent Xero
UK transfer charge	£0
Additional cards	One for each team member
Additional card fee	Free for the first card for each team member, the fee for an additional card is £4.99
Credit check	N/A

How can I find the best business account to open quickly?

• Check what documentation you need. You’ll always be asked for a basic set of information about you and your business when you sign up to a business account, but some providers will ask for less documentation than others.
• Branches or digital only? If you’re happy with a digital-only business bank account, they are often quicker to open as no branch visits are required.
• No credit checks. If you’re really keen to open an account quickly and with less hurdles in the way, there are providers who don’t conduct credit checks or ask for proof of address (although be aware that these accounts sometimes come with higher fees attached).

Good for accounting integrations

Good for integrated accounting software - FreeAgent, Xero and QuickBooks.

Go to siteRead review

Free account

Apply in minutes

By NatWest

• Why it’s great
• Pros/cons
• Details

Mettle is the first standalone business banking app to be offered by one of the high street banks, NatWest Group. Following a pilot phase, Mettle saw its full launch in November 2019, and looks to rival the mobile app-based business accounts already offered by challenger banks. Mettle lets business customers apply for an account in minutes, forecast business performance and create invoices. All of this is possible in its mobile app, which is designed to be easy to use, as well as free to use.

• Quick and easy application process
• Option to freeze your card if you loose it
• Free and includes some useful features
• Owned by the Natwest group whom are very credible
• Sleek easy to use app

• Overdrafts are unavailable
• Savings/pots feature is unavailable however is supposedly in the making
• Not available on android
• Not FSCS protected
• Daily payment limit of £10,000

Account fee	£0
UK ATM Charge	Free
Account software integration platforms	FreeAgent Xero
UK transfer charge	£0
Additional cards	N/A
Additional card fee	N/A
Credit check	Soft search with no impact on credit score

Good for new businesses

Finder's pick: GoSolo

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Free company registration

No credit check

Simple registration

• Why it’s great
• Pros/cons
• Details

GoSolo is a newly launched digital account aimed at small businesses and comes with a free company formation service and invoicing. You can form a limited company at the same time as opening an account on GoSolo’s website. The firm doesn’t have any branches, so all customer service is online.

• No monthly account fee
• Free limited company formation
• Invoice directly from your GoSolo account page
• Strong accounting and bookkeeping features
• Zero fees on card payments in the UK or abroad
• Manage your card from your GoSolo account page

• No international money transfers
• No direct debits
• Can’t deposit cheques
• No overdrafts or business credit cards available

Account fee	£0
UK ATM Charge	0
Account software integration platforms	N/A
UK transfer charge	£0
Additional cards	N/A
Additional card fee	N/A
Credit check	N/A

Good for cashback

CardOneMoney

★★★★★

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No credit checks

Online account

Prepaid card

• Why it’s great
• Pros/cons
• Details

CardOneMoney has designed its business bank account specifically for small businesses, and you can apply if you are a sole trader, partnership or limited company. One of the biggest draws is that you can set up the account through a speedy online process, with no credit check required. CardOneMoney says most accounts are open within three hours.

• Quick application process
• No credit check required
• Cashback rewards available on the associated Mastercard
• No failed payment fees

• Quite a few charges involved compared to some other business accounts, including the £55 application fee, £12.50 monthly account fee and various other transaction fees
• No credit or overdrafts available

Account fee	£12.50
UK ATM Charge	£1.50
Account software integration platforms	N/A
UK transfer charge	N/A
Additional cards	4
Additional card fee	£5
Credit check	No credit check

Useful tips on how to choose the best business bank account for your business

There are many factors to consider when choosing a business account, many of which apply whether you are a foreigner or a UK resident. It’s important to do your research and think about the following:

• Cost. Pricing structures can be complicated for business bank accounts. Some have monthly fees, some have transaction fees and many have both. So think about how you’ll use your account and what will work out to be the cheapest option for you.
• Your type of business. It’s a good idea to look for something that’s as tailored to your business as possible. Some banks offer both startup accounts and ones that are designed for more established businesses.
• Cash. If you take a lot of cash payments and need to load this cash into your business account, you’ll want to make sure that you have a bank branch nearby.
• Ways to bank. Some business owners prefer to discuss banking in person, while others would rather have a great mobile app that makes banking slicker on the go. Not all banks will provide both.
• Accepting payments. Do you need to set up card payment terminals as well as a business account?
• Accounting software integration. If you’re managing a small business, being able to do banking and accounting from the same place makes life easier. Popular integrations include Xero, QuickBooks and FreeAgent.
• Related financial products. Do you also need a savings account, insurance or a business loan, and does your chosen bank provide these?
• International banking. Do you trade abroad or need to make a lot of international payments? Check if you can do this with the business account or if you can open an accompanying account in a different currency.
• Bad credit. If you have a poor credit history, you might be more likely to have your business account application rejected, but some banking providers specialise in accounts for these type of customers (we mention more on this below).
• Address checks. Some of the digital-only banking providers don’t ask for proof of address. This is particularly relevant if you have bad credit or are a foreigner without a UK address and are looking to open a business account here.

Business bank account fees explained

Unlike with most personal current accounts, many business accounts come with costs attached, which can range from a monthly fee simply for having the account, to a charge for paying in a cheque.

We outline the main types of business account costs below – bear these in mind when you’re looking at a bank’s pricing structure or an account’s terms and conditions:

• Monthly or annual account fee

  This is a flat fee for having and using your business account – it’s usually charged monthly but sometimes it’s an annual fee.

• Electronic payments (in or out)

  This includes things such as direct debits and standing orders, as well as Faster Payments bank transfers made to other individuals or companies (which you might set up or make through online, mobile or telephone banking). Some business accounts don’t charge for these types of payments, while others will give you a set allowance per month or charge you for each one.

• Cash or cheque payments (in or out)

  When you deposit or take out cash at a bank branch (or at a Post Office, if your bank supports that service), you might be charged a flat fee or a percentage fee for any cash and coins you deposit or money you withdraw over the counter. Some banks have a set fee for depositing a cheque and also charge when a cheque you’ve written to someone else is paid into their account.

• International payments

  This could include any purchases or cash withdrawals made using your card abroad (non-Sterling transactions). But there are also usually fees for making an international payment – such as a SEPA payment or SWIFT payment – from your bank account to one based overseas. Some providers will also charge you for receiving an international payment into your account.

• Additional services

  There are some services you might use occasionally that incur a special charge, such as making a CHAPS payment (this a high value payment that is cleared on the same day) or issuing a banker’s cheque. Some business accounts also offer optional services e.g. a VAT calculation and submission service, which you can expect to pay extra for if you sign up.

How can I apply for a business account?

Once you’ve researched and chosen which business account you’d like to go for, you’ll need to apply to that banking provider to open it. Many applications can now be done online or through a mobile app (especially given the growing number of digital-only accounts), although some banks with a branch network might ask you to visit in person.

Every business bank account will have a slightly different application process, but here is a general list of information and documents that you should have to hand:

• Your business name and address
• Your own personal details and contact information
• A form of ID
• Proof of address
• Estimated business turnover
• Personal banking/financial statements
• Companies House registration number, if you’re a limited company

Not every banking provider will ask you for all of this documentation, and on the flip side, there may be some who request even more detailed information about your business and its finances.

Most business bank account providers will also carry out some kind of credit check on you, although there are a few that will let you open an account without one (but be aware these products tend to come with higher usage fees). For more information on opening a business account without a credit check, check out our guide to opening a business account with a bad credit score. You can also check your credit score here.

Best business banks for customer satisfaction 2021

Our customer satisfaction awards are decided by the only votes that really matter – yours. We asked customers of eight major business banking providers to tell us about their experiences. Now we can reveal how they rated these UK banks. Learn more about the awards here.

Overall satisfaction	Customers who’d recommend	Bank	Review
★★★★★	97%		Digital challenger bank Starling reigned supreme in our survey, scoring near-perfect marks, despite not having any branches. The customers we polled highlighted its easy-to-use app and low business banking charges.	Visit Starling
★★★★★	94%		Runner-up Barclays wasn’t too far behind Starling. The bank operates different business accounts depending on company size, and our survey respondents praised its “helpful” customer service.	Read our review
★★★★★	93%		Long-established Lloyds Bank also recorded an impressive “would recommend” score of 93% in our survey. It offers business accounts for new and established businesses as well as one for clubs and charities. Customers cited the bank’s reliability and account holder support as positive points.	Read our review
★★★★★	90%		Santander operates a range of different business accounts, some of which come with discounted fees for first-time customers. Customers in our survey praised this provider’s online banking features and “friendly” staff.	Read our review
★★★★★	90%		Although its branch network is mainly confined to Scotland, Bank of Scotland offers accounts to businesses across the UK. It has several business account options to choose from, and there is a dedicated resource centre especially for business account holders.	Read our review
★★★★★	82%		TSB relaunched on the UK high street in 2013, but its recent branch closures were highlighted by some business account holders in our survey. But TSB does offer an initial period of free business banking for six months, and some of our respondents were very happy with the customer service they had received.	Read our review
★★★★★	81%		HSBC, the largest bank in the UK, didn’t poll as strongly as some of its counterparts in our survey, posting a rating of 3.5 stars. Like some of the other banks here, it offers a free banking introductory period for startups or businesses switching their account to HSBC, after which fees apply.	Visit HSBC
★★★★★	74%		NatWest brought up the end of the table in this year’s business banking survey, with a star rating of 3. Three-quarters of the customers we polled would still recommend the bank to a friend, although there were mixed reviews about its level of customer service.	Read our review

Best UK business bank by customer service 2021

In August 2021, the results of the “Business banking service quality – Great Britain” survey were published by BVA BDRC, on behalf of the Competition and Markets Authority (CMA). SME customers with business current accounts were asked how likely they would be to recommend their account provider’s services to other SMEs in the following areas: overall service quality, online and mobile banking services, service in branches and business centres, SME overdraft and loan services, and relationship/account management services. The findings are below.

• Overall service quality
• Online and mobile banking services
• SME overdraft and loan services
• Relationship/account management
• Service in branches and business centres

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Frequently asked questions

• How can I open a business bank account in the UK?

  It is easier than you think. We have written a guide outlining the steps on how to open a business bank account.

• Can a foreigner open a business bank account in the UK?

  UK banks are allowed to offer business accounts to non-UK residents, although the application process may be a little bit more lengthy because of the extra checks they have to undertake.

  The big high-street banks may also be more likely to offer a non-UK resident an international bank account, rather than a business account. As a minimum requirement, you'll need ID and proof of address for the country you reside in for this.

  But if you're happy to run your business account online or through your mobile phone, there are now many digital-only business accounts available in the UK, thanks to the new digital challenger banks and other fintech providers entering this market.

  The advantage of this for foreign applicants is that some (not all) of these digital banking providers do not require a proof of address, so you can easily open the account from abroad.

• Can I open a business bank account online?

  Yes, it is possible. The digital banking era brought the possibility of setting things up without having to go into an actual bank. Even though most banks allow account set-up online, some may require your attendance so make sure you're familiar with all the terms of applying.

• How long does it take to open a business bank account?

  Although the application may take minutes, the actual account set-up might take a bit longer. The bank you sign up to usually needs to review your documents and check your eligibility. Your account may be ready for you to use within minutes, days or even weeks, so it depends on the institution you apply to.

• Is there any free business bank account?

  Being able to opening a bank account that is totally free of charge is more common if you only need it for personal use. Business bank accounts can be pretty expensive whether it's because of transaction or account management fees. However, some of them are a lot cheaper than the others, so read the terms carefully and estimate the costs of opening an account before you make a decision. Also, if your company is a startup or if you plan to change banks, you may be offered a free banking period.

• Can I open a business bank account if I have bad credit?

  Yes, you can. Most business bank account providers will carry out some kind of credit check on you, which will highlight a poor credit score. But there are a few providers that will let you open an account without any credit checks (but be aware these products tend to come with higher usage fees). For more information on opening a business account without a credit check, read our guide to opening a business account with a bad credit score.

• Can I just use my personal account for business purposes?

  Generally not. Legally, you can only do this if you are a sole trader, but even in that case, some banks may not allow it, so make sure you check your terms and conditions before doing it. Learn more about the problems with using your personal account. You can also learn about the benefits of opening a business account.

• How does switching business accounts work?

  You'll need to get in touch with the new financial institution you're planning on switching to, and it will take care of that for you. Thanks to the Current Account Switch Guarantee, it will transfer your funds, direct debits and standing orders, redirect your incoming payments and, if you want to, close your old account – for free. It will take a maximum of seven days. Learn more about how to switch your business bank account.

• How long does it take to switch to another business account?

  You can switch your account within seven days. Learn more about the process and find a provider that can help with the switching process.

• Can you have a joint business account?

  Yes, this is possible. Some providers allow you to register with a partner during the application process, while some providers allow you to add extra users to your account after the creation of the account. Compare joint business bank accounts here.