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 people who have a poor 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 2 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
Not all services can be accessed via the app
Traditional bank still needed for majority of your business finance needs
Account fee
£69
UK ATM Charge
£2
Account software integration platforms
FreeAgent, Xero
UK transfer charge
£0.99
Additional cards
Additional card fee
5.95
Credit check
Just like its personal account, Cashplus’s business account is a digital-only account that can be entirely managed online or from the app. You can open an account in a few minutes and without a credit check – Cashplus will only need to verify your company’s details.
Cashplus isn’t technically a bank, but the business account does all you would expect from a business account, including setting up direct debits and giving you a debit card to make payments and withdraw cash. In addition, you may also be able to get funding for your business, if you need it, in three different ways.
An overdraft. Cashplus calls it an “iDraft”. You can get up to £2,000 of credit and using it costs £1.50 a day.
Direct debit protection. The app will notify you when a direct debit is due and you don’t have enough funds to cover it. Cashplus will then give you a quote for a loan on that amount.
Business cash advances. Read more on what they are and how they work in this guide. Cashplus offers cash advances through its partner Liberis.
You can also load cash on your account at every post office in the UK for free up to £1,000 a month.
Finally, if you need additional cards for your team, you can get them easily. You can also set individual spending limits and track expenses through the app. If you need to go abroad, you can get a euro or dollar card for free and make card payments or ATM withdrawals without foreign currency transaction fees.
How much does it cost?
Aside from the cost of borrowing money through it, expect quite a few different fees even for using the Cashplus business account in a standard way:
Annual fee. You’ll need to pay £69 a year.
Bank transfers. Only the first three each month are free. After that, it’s 0.99 each.
ATM withdrawals. You’ll pay £2 for each withdrawal in the UK, and £3 if you’re abroad.
The Cashplus business account can be appealing if you’ve just started your business or if it has bad credit: you can open it easily and without credit checks, it offers a good range of features and you can also borrow money if you need it.
If you can easily qualify for a standard business account, the Cashplus business account is probably not the best option because there are cheaper options available that either don’t charge a monthly fee or allow free unlimited bank transfers and ATM withdrawals.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Charlie Barton is a publisher at Finder. He specialises in banking and investments products, including banking apps, current accounts, share-dealing platforms and stocks and shares ISAs. Charlie has a first-class degree from the London School of Economics, and in his spare time enjoys long walks on the beach.
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