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.
Monzo Business Lite
9.3 Excellent| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
If you apply for a business account with Monzo, only a soft credit check will be carried out at application. This won't affect your credit history, making it a good option if you have poor credit or have yet to build a business credit score. There are 3 pricing plans to choose from with Monzo, one of which is free. All plans come with a business debit card, 24/7 customer support, free UK bank transfers and savings pots to separate money. You'll also get instant spending notifications through the app and be able to budget and categorise spending.
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Revolut Company Account (Basic)
8 GreatThis business account from Revolut comes with 4 different pricing plans, each offering different features, depending on how big your business is and how much you use the account. There are no credit checks for opening the account, so it's worth considering if your business has yet to build up a credit history. Some of the account's top features include the ability to integrate with accounting software such as Xero and QuickBooks, smart invoicing, virtual and prepaid cards that can be handed out to colleagues, and multi-currency accounts that allow you to exchange money in more than 30 currencies. Users can also manage their team's expenses in one place and allocate different account permissions for different team members. You'll also have an allocated number of free international payments depending on the payment plan you're on. Note that you cannot deposit cash into the account.
Best business bank account for small businesses, sole traders and freelancers: Tide
8.6 GreatTide is a fintech app that offers business accounts to small businesses and freelancers, hoping to relieve some of the financial stress that comes with a growing company. One of the ways it does this is to help new businesses register their limited company and open an account all in one go. Tide also stands out for the number of accountancy software packages it can integrate with, giving you more choices to find one that suits your business needs.
Best business bank account for bad credit: Zempler
8.8 Great| Account fee | £9 per month |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Opening a business bank account with bad credit can be complicated. Most banks carry out a credit check when you submit your application and reject it if you don’t meet the requirements. All is not lost, though! Some companies, like Zempler, offer banking services perfect for businesses with 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.
| Account fee | £9 per month |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Card One Money Account
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
This business account from Card One Money is designed for small businesses and offers a speedy online application process. No credit check is required so it's a good option if your business has a limited credit history. The account can be managed via the app or online and you can also phone the call centre for assistance if required. There is a fairly hefty application fee to pay and you will be charged a monthly account fee on top. However, in return, you'll be able to send instant domestic payments, as well as international payments in a range of currencies. You'll also be able to order cards for up to 4 other people within your business and assign different levels of access depending on their roles and responsibilities. You can pay in cash and cheques at any Barclays branch.
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Monese Business Account
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
One of the biggest benefits of the Monese business account is that it's easy to open. Provided you are a UK business, you can open an account without proof of address and without the need to run a full credit check, making it ideal for those with poor credit scores or no credit history. The account, which charges a monthly fee, is operated via the app, making it easy to keep on top of your spending. It's also packed full of useful features such as the ability to set up different savings pots, advanced security, and a debit card that can be used online, in-store or at ATMs worldwide. What's more, users can easily create invoices in the app and send money internationally to more than 30 different countries. Incoming international transfers are free of charge. Cash can also be paid into the account at any Post Office branch or at PayPoints.
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
ANNA Pay As You Go Account
8.6 Great| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
One of the biggest draws of this business account from ANNA is that you can open it in less than 10 minutes. There's no credit check to worry about, making it a good option for those with bad credit, and all you will need to provide is proof of ID, your email address and some details about your company. There are 3 different pricing plans available, including a free option, and the amount you pay will depend on your monthly turnover and business type. If you don't use your account one month, you won't pay the monthly fee. Depending on the plan you have, you can benefit from unlimited debit cards on the account, a set number of free transactions, multiple user access and free ATM withdrawals. Further benefits include the opportunity to earn cashback on purchases, instant payment notifications and the ability to create and manage invoices.
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
Mettle by NatWest Mobile Account
8.6 Great| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
The Mettle business account is designed for sole traders and limited companies with up to 2 owners. There's no monthly fee for the account and your business won't have to undergo a full credit check when you apply. Only a soft check is carried out which won't impact your credit score. Features of the account include customisable invoices, the option to sync with accounting software, scheduled payments and savings pots. The account will also help you to automatically save for your tax bill, making business life a bit easier. Mettle is part of the NatWest Group.
| Account fee | Free |
|---|---|
| Arranged overdraft | |
| Requires credit check |
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).
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.
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.
Yes, it is possible to open a business bank account without a credit check. Examples of providers that offer this are Zempler 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.
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).
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.
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.
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.
We explore what free business bank accounts have to offer and who they suit.
Make sure you understand the rules around using a personal bank account for your business.
Find out more about the multi-currency account from Payset.
Business bonds allow your company to earn higher interest rates by locking money away, but there are risks. Accessing the money early can be costly, so it’s important to make sure you have easy access savings too.
Easy access business savings accounts offer maximum flexibility for companies that want to earn interest on surplus cash but are the right type of account for your business.
Learn more about the best business bank accounts in the UK and find the best one to manage your company finances.
Find out how business client accounts work and who they are suitable for.
MultiPass’s payment platform aims to simplify global business banking by removing boundaries for global transfers.
Learn more about the benefits of opening a business notice savings account.
By switching your business bank account, you may be able to reduce your monthly fees or take advantage of different features like smart bookkeeping tools.