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
Xero, QuickBooks, FreeAgent, ReckonOne, Kashflow and Sage
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
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
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).
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.
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.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Many consider opening a business bank account with bad credit to be a difficult challenge, however it is possible. Here we have summarised the options available.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
Michelle Stevens is a deputy editor at Finder, specialising in banking, finance and mortgages. She has a journalism degree from the University of Sheffield and has been a journalist for more than 10 years, writing on topics including fintech, payment systems and retail. In her spare time, Michelle likes to travel, explore new foodie experiences and attempt to improve her own culinary skills.
Debt consolidation can have a positive or negative impact on your credit score. Here’s how to make sure you don’t damage your record when consolidating debt.
If your credit score is less than ideal, you might be worried about being refused for a business account application. But there are business accounts with no credit checks, sometimes referred to as “guaranteed”, that can offer a solution.
It can be hard to get accepted for a business account after bankruptcy, even once you have been discharged. But some banks do offer business bank accounts without credit checks and will allow you to open an account.
While it may look like additional admin work, opening a separate business account is actually likely to make your work life easier and more organised. Here are the pros and cons.
Need a bank account for your business but unsure of where to start? This guide covers all the basics, from why it’s a good idea to open one to the documents you will need.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
