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Best business bank accounts for bad credit 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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By

Michelle Stevens

Updated

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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.

Latest reviews of accounts with no credit checks

Revolut - Revolut Business Free

Revolut Business Free
Finder rating
★★★★★
Go to site Read review
Sign up today and unlock 1 month of a paid plan without subscription fees.
This business account from Revolut comes with four 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.
  • 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 N/A
Bank transfers N/A
Accounting integrations FreeAgent
Xero
Requires credit check N/A
Overdraft N/A

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

Tide Free
Finder rating
★★★★★
Customer rating
★★★★★
Go to site Read review

24/7 customer support

Instant notifications

Software integration
Free Tide Accounting.
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. 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.
  • 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 N/A
Bank transfers N/A
Accounting integrations Clear Books
FreeAgent
KashFlow
QuickBooks
Reckon One
Sage
Xero
Requires credit check N/A
Overdraft N/A

Best business bank account for bad credit: Cashplus

Cashplus Business Go Bank Account
Finder rating
★★★★★
Go to site Read review

Poor credit friendly

Instant notifications

Software integration
No annual or monthly fee when you apply using the Finder link.
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 that have 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.
  • Open an account in 5 mins
  • "Cashplus iDraft" once eligible
  • Currency cards for travel
  • 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 N/A
Bank transfers N/A
Accounting integrations Clear Books
FreeAgent
KashFlow
QuickBooks
Sage
Xero
Requires credit check N/A
Overdraft N/A

Monese - Monese Business

Monese Business
Read review
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.
  • 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 N/A
Bank transfers N/A
Accounting integrations N/A
Requires credit check N/A
Overdraft N/A

Card One Money - CardOneMoney

CardOneMoney
Finder rating
★★★★★
Go to site Read review
No monthly account fee for the first three months.
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 four other people within your business and assign different levels of access depending on their roles and responsibilities. You can pay in cash at any Post Office branch and cheques at any Barclays branch.
  • 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 N/A
Bank transfers N/A
Accounting integrations FreeAgent
Sage
Wave
Xero
Requires credit check N/A
Overdraft N/A

ANNA Money - ANNA Free

ANNA Free
Finder rating
★★★★★
Go to site Read review
Earn 1% cashback for paying with your ANNA card in selected categories.
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 three 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.
  • 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 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 N/A
Bank transfers N/A
Accounting integrations Sage
Xero
Requires credit check N/A
Overdraft N/A

Can I open a business bank account with bad credit?

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).

How 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:

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.

How do 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 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.

What about business accounts for bad credit at mainstream banks?

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).

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 for bad credit

1 - 4 of 4
Updated regularly
Name Product Account fee Bank transfers Requires credit check Accounting integrations Arranged overdraft Account management Key benefits Business bottom txt Link
Cashplus Business Go Bank Account
OFFER
Cashplus Business Go Bank Account
Free
£0.30
Free for first 3 payments sent each month (£0.30 for every transfer thereafter)
Clear Books, FreeAgent, KashFlow, QuickBooks, Sage, Xero

By invitation
Online & app
No annual or monthly fee when you apply using the Finder link
Go to site
View details
Tide Free Account
EXCLUSIVE
Tide Free
Free
£0.20
Free if both accounts are with Tide
Clear Books, FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero
Online & app
Free Tide Accounting.
Go to site
View details
Revolut Business Free Account
OFFER
Revolut Business Free
Free
Free
FreeAgent, Xero
Online & app
Sign up today and unlock 1 month of a paid plan without subscription fees. T&Cs apply.
Go to site
View details
Monese Business Account
Monese Business
£9.95 per month
Free
N/A

No but will deduct the money from your balance the next time you make a deposit and will not charge you a fee
Online & app
View details
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What credit score do you need to open a business account?

It is impossible to answer this question for a number of reasons.

First off, different bank account providers will have different limits when it comes to accepting applicants with low business credit scores. Also, these banks have a choice of different credit reference agencies using different algorithms to measure your score.

On top of that, your credit score is only one factor used to determine your eligibility for a business bank account. If your business scores well for other eligibility criteria, a bank may be more willing to overlook a poor credit score.

What is a soft credit check?

A soft credit check, or soft search, is a search on your credit file that won’t affect your credit score. Although a soft credit check will still be recorded on your credit report, it won’t leave a mark for other lenders to see, so it won’t affect your ability to get credit.

In comparison, a hard credit check, or full credit check, will leave a mark on your credit file which is visible to other lenders. Hard checks can have an impact on your credit score and lots of searches in a short space of time can make you look desperate for credit. This can reduce the chances of your application getting accepted.

How do digital-only banks compare to traditional high street banks?

One of the biggest advantages of applying for a business account with a digital-only bank is that a number of them won’t conduct full credit searches. This means that if you have poor credit, or your business simply hasn’t built up a credit history yet, a digital-only bank can provide an alternative to the big high street banks.

Digital-only banks also have many other advantages over high street banks. For a start, the application process is usually easy and straightforward, and often your account will be up and running the same day you apply. Digital-only accounts also tend to offer more innovative features compared to high street business bank accounts. For example, your account might link to accounting software or you might have access to budgeting tools.

However, bear in mind that because many digital-only banks don’t carry out credit checks, this means they also won’t offer an overdraft. In comparison, most high street business bank accounts will offer credit products such as an overdraft and business credit card.

How to get your credit back on track

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.

Prepare a solid business plan

Having a well-presented, thorough business plan will help to show lenders you’re serious about your business, have a good understanding of the financials and know where you want to take the business in the future. It should include an explanation of what your business does, financial projections and an overview of the market as a whole.

This step is particularly important if you’re opening an account with a high street bank as many will require you to have an appointment with a business adviser. If you’re opening an account with a digital bank, you’re unlikely to need a business plan, but having one can still help you and your business.

Check your credit report

The next step is to check your credit report as this will enable you to fix any issues before you apply for a bank account. If you spot any mistakes, such as an incorrect address or outstanding debt that you’ve since paid off, contact the credit reference agency as soon as possible and ask them to correct the error.

If you are unable to get a mistake fixed, you can add a Notice of Correction to explain what happened. This should be no more than 200 words but could be useful if you missed a payment due to ill health, for example.

It’s also a good idea to check how your address is listed on your report and make sure you copy this format whenever you apply for credit. It might seem minor, but even little things like this can cause problems.

Get on the electoral roll

It’s also important to check that you are listed on the electoral roll at your current address. Lenders use the electoral roll to verify your identity which can have a positive effect on your credit score.

Reduce your credit utilisation

Your credit utilisation ratio is how much of your available credit limit you’re using and the lower it is, the better, and the more attractive you’ll be to lenders. As a rule of thumb, it’s best to keep your credit utilisation ratio below 30%.

To do this, try to pay off some or all of your outstanding balances on credit cards, store cards or an overdraft at least three months before applying for a bank account.

Register with HMRC

Under current tax rules, you must register with HMRC within three months of trading. It’s also best to do this before you apply for a business bank account. If you don’t, there is a chance your application could be rejected, even if you’re applying for an account with guaranteed acceptance.

Pros and cons of business bank accounts for bad credit

Pros

  • Allows you to bypass a credit check.
  • Can be a quick process.
  • Can help to improve your credit score.

Cons

  • Must apply individually to protect credit score.
  • May be a basic account at first.
  • May come with higher fees.
  • Harder to secure with traditional high street banks.

The bottom line

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.

Matthew Boyle, Finder’s banking publisher, says: “It’s great that there is now a raft of relatively new digital banking providers who specialise in operating business accounts for people with bad credit. But as our guide also explains, there are measures you can take to improve your credit rating, so it’s worth starting to take those steps while you research which is the best business account for you to open.”

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