Opening a business account with a bad credit score and no credit check

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

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Finder's pick: Cashplus business

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  • Quick set up
  • Overdraft option
  • Currency cards to use overseas
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Best business bank account for bad credit: Cashplus

Cashplus business

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Poor credit friendly

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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

Can I get a business bank account with bad credit?

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.

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).

What can I do 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:

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

How can 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 CardOneMoney.

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 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.

Compare business bank accounts

Data indicated here is updated regularly
Name Product Account fee Bank transfers Accounting integrations Non-Sterling transactions Overdraft Account management Key benefits
Tide
Free
£0.20
Free if both accounts are with Tide
Xero, QuickBooks, FreeAgent, ReckonOne, Kashflow and Sage
Free
App
Free spending abroad and at home in any currency, instant payment alerts, automatic categorisation
Cashplus business
£69
First year's annual fee refunded.
£0.99
Free transfers in first 3 months
FreeAgent, Xero
2.99%

On invitation
App, Online
First year's annual fee refunded.
Pleo
£6
Xero, Economic, Sage, Fortnox
No fee
Soldo
Soldo
£5
Per card
Quickbooks and Xero
a flat 1% FX fee for any transaction in the non-domestic currency
Spending limits, real time notifications, company cards
Coconut Start
Coconut Start
Free
Free
2% currency conversion fee
Get £10 when you open an account by October 31st
Monese Business Account
Free
Free
Avios, Paysafe
£2000 allowance with 2% fee after

No but will deduct the money from your balance the next time you make a deposit and will not charge you a fee
Revolut
Free
Free
5/month free then 20p per transfer
Xero, Time management, Freeagent and Slack
£3
Can hold multiple currencies, issue prepaid corporate cards and track expenses
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