Starting a business can be an exciting and daunting process, especially when it comes to managing finances. One of the most important things you need to do when setting up your business is to open a business bank account. However, this can be a difficult task if you have bad credit – so how do you avoid a credit check?
In the UK, most banks require a credit check before opening a business account, which can be a barrier for many entrepreneurs.
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But don’t worry; there are still ways to get a business bank account without undergoing a credit check, even if you have bad credit. In this article, we will explore everything you need to know about getting a business bank account without credit checks when you have bad credit.
Contents
- Best business bank accounts with no credit check for bad credit
- Why do banks conduct credit checks for business accounts?
- Tips for getting a business account with bad credit
- How to apply for a business bank account without a credit check
- Do no-credit-check business bank accounts have any limitations?
- FAQ
Best business bank accounts with no credit check for bad credit
| Bank | Lowest monthly fee | Offers current account | Offers savings account | Overdraft available |
|---|---|---|---|---|
| Acorn Account | £12.50 | Yes | No | No |
| ANNA Money | £14.90 | Yes | No | No |
| Card One Money | £12.50 | Yes | No | No |
| Cashplus | Free | Yes | No | No |
| Fair Everywhere | £12.50 | Yes | No | No |
| GoSolo | Free | Yes | No | No |
| Monese | £9.95 | Yes | No | No |
| PayPal | Free | No | No | No |
| Revolut Business | £7 | Yes | No | No |
| Silverbird | Free | Yes | No | No |
| Tide | £9.99 | Yes | No | No |
Acorn Account
Acorn Account is a UK-based banking service that offers business bank accounts without the need for a credit check. They are known for providing accessible financial solutions to individuals and businesses, especially those with bad credit histories. Acorn Account focuses on simplicity and ease of use, making it a suitable option for those who may have struggled with traditional banking.
Fees and charges
Acorn Account offers a transparent fee structure. They charge a monthly account management fee of £12.50. Additionally, there is a £3 fee for ATM withdrawals in the UK and a £3.50 fee for international ATM withdrawals. Electronic transfers within the UK are free, but international transfers incur a fee of £15. It’s essential to review their fee schedule to understand the costs associated with using their services fully.
Why it might be good for those with bad credit
By not conducting credit checks, Acorn Account opens its doors to those who have faced rejection from traditional banks, offering them the financial services they deserve.
Moreover, Acorn Account’s user-friendly interface and straightforward fee structure are a breath of fresh air for those who may have found conventional banking overwhelming.
Read our Acorn Account review or visit the website.
ANNA Money
ANNA Money, which stands for “Absolutely No-Nonsense Admin,” is a fintech company based in the UK. They provide innovative banking and financial solutions to freelancers, small businesses, and entrepreneurs. ANNA Money is known for its user-friendly mobile app and a range of features designed to simplify financial management.
Fees and charges
ANNA Money offers a transparent pricing structure. They provide a free tier with basic features, but for more extensive usage, they offer a paid subscription plan at £11 per month. Additional charges apply for extra transactions, international payments, and cash withdrawals. For example, international transfers incur a fee of 1.5% of the transaction amount. It’s essential to review their fee schedule to understand the costs associated with their services fully.
Why it might be good for those with bad credit
Their non-reliance on credit checks ensures that past financial setbacks won’t be a barrier to accessing vital financial services.
ANNA Money’s intuitive app and feature-rich platform empower users to take control of their finances, regardless of their credit history.
Read our ANNA Money review or visit the website.
Card One Money
Card One Money is a UK-based financial institution that offers alternative banking solutions. They cater to individuals and businesses, including those with less-than-perfect credit histories. Card One Money focuses on providing essential banking services with minimal barriers.
Fees and charges
Card One Money offers a straightforward fee structure. They charge a monthly account management fee of £12.50. Additionally, there is a £3 fee for ATM withdrawals in the UK and a £3.50 fee for international ATM withdrawals. Electronic transfers within the UK are free, but international transfers incur a fee of £15. It’s essential to review their fee schedule to understand the complete cost of using their services.
Why it might be good for those with bad credit
Their policy of not conducting credit checks ensures that everyone, regardless of their credit history, can access critical financial services. Card One Money’s no-frills approach to banking simplifies the financial landscape for those who may have found traditional banking intimidating.
Read our CardOneMoney review or visit the website.
Cashplus
Cashplus is a leading UK-based digital banking service that caters to individuals and businesses. They are known for providing fast and accessible financial solutions, including business bank accounts. Cashplus focuses on efficiency and ease of use.
Fees and charges
Cashplus offers a transparent fee structure. They charge a monthly account management fee of £5.95. ATM withdrawals in the UK are free, but international ATM withdrawals incur a fee of £2.99 per transaction. International payments have a fee of 2.99% of the transaction amount. It’s crucial to review their fee schedule to understand the costs associated with their services fully.
Why it might be good for those with bad credit
Their policy of not conducting credit checks ensures that past financial difficulties won’t hinder access to essential banking services.
Cashplus’s commitment to efficiency and simplicity empowers users to navigate their financial journey with confidence, irrespective of their credit history.
Read our Cashplus review or visit the website.
Fair Everywhere
Fair Everywhere is a UK-based fintech company that offers versatile financial solutions, including business bank accounts. They aim to provide accessible and inclusive banking services to individuals and businesses, with a focus on fairness and transparency.
Fees and charges
Fair Everywhere offers a transparent fee structure, with a monthly account management fee of £7.50. ATM withdrawals in the UK are free, but international ATM withdrawals incur a fee of £2 per transaction. International transfers have a fee of £3.50 for each transaction. It’s essential to review their fee schedule to understand the complete cost of using their services fully.
Why it might be good for those with bad credit
By abstaining from credit checks, Fair Everywhere ensures that financial setbacks of the past won’t hinder access to critical financial services. Fair Everywhere’s unwavering commitment to fairness and transparency resonates with users seeking a trustworthy financial partner, regardless of their credit history.
Read our Fair Everywhere review or visit the website.
GoSolo
GoSolo is a UK-based fintech company that specialises in providing financial services to freelancers, contractors, and small businesses. They offer business bank accounts without the need for credit checks, focusing on simplicity and tailored solutions.
Fees and charges
GoSolo offers a clear fee structure, including a monthly account management fee of £4.95. ATM withdrawals in the UK are free, but international ATM withdrawals incur a fee of £1.50 per transaction. International transfers have a fee of 1.5% of the transaction amount. It’s essential to review their fee schedule to understand the complete cost of their services.
Why it might be good for those with bad credit
By omitting credit checks, GoSolo ensures that previous financial challenges won’t impede access to vital financial services. GoSolo’s specialised approach to serving freelancers and small businesses offers tailored solutions that empower users to regain control of their finances, irrespective of their credit history.
Read our GoSolo review or visit the website.
Monese
Monese is a UK-based digital banking service that offers a range of financial solutions, including business bank accounts. They are known for their fast and accessible services, catering to individuals and businesses alike.
Fees and charges
Monese provides a transparent fee structure. They charge a monthly account management fee of £9.95. ATM withdrawals in the UK are free, but international ATM withdrawals incur a fee of £2 per transaction. International transfers have a fee of 2% of the transaction amount.
Why it might be good for those with bad credit
Monese is a practical choice for individuals or businesses with bad credit because they do not require credit checks during the account application process. This inclusivity allows those who may have faced rejection from traditional banks to access essential financial services. Monese’s emphasis on speed and accessibility aligns with the needs of customers seeking efficient banking solutions, regardless of their credit history.
Read our Monese review or visit the website.
PayPal
PayPal is a globally recognised digital payment platform that offers business accounts for UK-based businesses. While PayPal is not a traditional bank, it provides essential financial services, including business transactions and payments.
Fees and charges
PayPal offers a straightforward fee structure for business transactions. They charge a fee based on transaction volume, starting at 2.9% + £0.30 per transaction. They also provide options for currency conversion and international payments, each with its associated fees. It’s essential to review their fee schedule to understand the costs of using PayPal for business transactions.
Why it might be good for those with bad credit
Their non-reliance on credit checks ensures that past financial setbacks won’t be a hindrance to accepting online payments and efficiently managing finances. PayPal’s global recognition and user-friendly interface provide a dependable platform for businesses, regardless of their credit history.
Read our PayPal review or visit the website.
Revolut Business
Revolut Business is a UK-based fintech company that offers a range of financial services to businesses, including business bank accounts. They are known for their innovative approach to banking, with a focus on providing flexibility and cost-effective solutions.
Fees and charges
Revolut Business offers a transparent fee structure, with various pricing tiers depending on the business’s needs. Their free plan includes basic features, while the paid plans start at £25 per month. They charge fees for international transactions, ATM withdrawals, and other services. For example, international transfers incur a fee of £3 per transaction. It’s crucial to review their fee schedule to understand the costs associated with their services fully.
Why it might be good for those with bad credit
By bypassing credit checks, Revolut Business ensures that past financial difficulties won’t hinder access to modern and innovative banking services. Revolut Business’s emphasis on flexibility and cost-effectiveness offers a lifeline to users seeking innovative financial solutions, irrespective of their credit history.
Read our Revolut Business review or visit the website.
Silverbird
Silverbird is a UK-based financial institution that offers alternative banking solutions, including business bank accounts. They focus on providing accessible and straightforward banking services to individuals and businesses.
Fees and charges
Silverbird offers a clear fee structure, including a monthly account management fee of £6.50. ATM withdrawals in the UK are free, but international ATM withdrawals incur a fee of £2.50 per transaction. International transfers have a fee of £3 per transaction. It’s essential to review their fee schedule to understand the complete cost of their services.
Why it might be good for those with bad credit
By abstaining from credit checks, Silverbird ensures that past financial difficulties won’t be a barrier to accessing essential financial services. Silverbird’s commitment to simplicity and accessibility offers a lifeline to users looking for a dependable financial partner, regardless of their credit history.
Read our Silverbird review or visit the website.
Tide
Tide is a UK-based fintech company that provides business banking services, primarily targeting small and medium-sized businesses. They are known for their user-friendly app and a range of features designed to streamline financial management.
Fees and charges
Tide offers a transparent fee structure, including a monthly account management fee of £9.99. ATM withdrawals in the UK are free, but international ATM withdrawals incur a fee of £1 per transaction. International transfers have a fee of 0.4% of the transaction amount. Reviewing their fee schedule is essential to understand the complete cost of their services.
Why it might be good for those with bad credit
By avoiding credit checks, Tide ensures that past financial setbacks won’t impede access to efficient banking services. Tide’s user-friendly app and streamlined features empower users to take control of their financial journey with confidence, irrespective of their credit history.
Read our Tide review or visit the website.
Why do banks conduct credit checks for business accounts?
Before we delve into the ways to get a business account without credit checks, it’s important to understand why banks conduct credit checks in the first place.
Credit checks are an essential part of a bank’s risk assessment process, as they help banks determine whether they can trust a potential customer with their money.
Credit checks provide a snapshot of an individual’s credit history, which includes information such as their payment history, outstanding debts, and bankruptcies.
When it comes to business accounts, banks are also interested in the credit history of the company’s directors and shareholders. This is because the financial health of the business is closely linked to the creditworthiness of its directors and shareholders.
If the directors and shareholders have poor credit histories, banks may see the business as a higher risk and may be less likely to approve a business account.
Ways to get a business account without credit checks
If you have bad credit, getting a business account with a traditional bank may not be an option. However, there are still ways to get a business account without undergoing a credit check. Here are some of the most popular options:
Online business accounts
Online business accounts are becoming increasingly popular, and many online banks don’t require a credit check to open an account.
These accounts can be set up quickly and easily, and you can manage your finances from anywhere using a mobile app or online banking.
Examples of online banks that offer business accounts include Tide, CardOneMoney, and Cashplus.
E-Money Accounts
E-money accounts are another option for those with bad credit. These accounts are not provided by traditional banks, but rather by e-money institutions, which are regulated by the Financial Conduct Authority (FCA).
E-money accounts work similarly to traditional bank accounts, but they don’t require a credit check, and you can usually open an account online in a matter of minutes.
Examples of e-money accounts include Pockit, Payoneer, and Revolut.
Prepaid Business Cards
Prepaid business cards are another alternative to traditional business accounts. These cards work like debit cards, but you load them with money before you spend it.
Prepaid business cards don’t require a credit check, and they can be used to make payments and withdraw cash just like a traditional business account.
Examples of prepaid business cards include Cashplus, PFS, and U Account.
Tips for getting a business account with bad credit
While getting a business account without a credit check is possible, it’s important to remember that having bad credit can still make it difficult to get approved. Here are some tips to help you improve your chances of getting a business account with bad credit:
Build your credit score
Even though traditional banks require a credit check, there are other financial institutions that may still consider your credit history. If you can improve your credit score by paying off outstanding debts, making payments on time, and reducing your credit utilization, you may be able to qualify for a business account with a traditional bank in the future.
Provide relevant information
When applying for a business account, make sure you provide all relevant information about your business, including your business plan, financial statements, and any other relevant documentation.
This will help the bank assess the risk of your business and determine whether you are a suitable candidate for a business account.
Consider a guarantor
If you have a guarantor with good credit, you may be able to increase your chances of getting approved for a business account.
A guarantor is someone who agrees to pay back the loan or overdraft if you can’t. Having a guarantor with good credit can give the bank more confidence in your ability to manage your finances.
Choose the right bank
Not all banks have the same criteria for approving business accounts. Some banks may be more willing to work with entrepreneurs who have bad credit than others. Do your research and find a bank that is more likely to approve your application based on your circumstances.
It’s important to note that these accounts may come with fees and restrictions, so it’s essential to compare the features and terms of each account carefully before choosing the best one for your business. Additionally, some of these accounts may require a personal credit check or other types of checks, so it’s crucial to read the terms and conditions carefully before applying.
How to apply for a business bank account without a credit check
If you’re a business owner with bad credit or want to avoid a credit check for other reasons, it’s still possible to apply for a business bank account in the UK. Here’s a step-by-step guide on how to apply for a business bank account without a credit check:
How to get a business bank account with bad credit
- Research your options
There are several business bank account options available that don’t require a credit check. Research each option carefully to find the one that suits your business needs and budget.
- Gather your documents
When applying for a business bank account without a credit check, you’ll need to provide specific documents to verify your business and personal information. These documents typically include:
Business registration documents
Identification documents, such as a passport or driver’s license
Proof of address, such as a utility bill or bank statement
Business plan
Financial statements, such as a profit and loss statement or balance sheet
Make sure you have all the necessary documents before applying for a business bank account. - Choose the right bank and account
After researching your options and gathering your documents, choose the bank and account that best meets your business needs. Make sure to carefully review the account’s fees, features, and any limitations or restrictions.
- Fill out the application
Once you’ve chosen the bank and account, fill out the application form carefully and accurately. Make sure to provide all the necessary information, including your business registration details, personal identification, and financial statements.
- Submit the application and wait for approval
After completing the application, submit it to the bank and wait for approval. Some banks may approve your application immediately, while others may take several days or weeks to review your application.
- Follow up with the bank
If you don’t receive a response from the bank within a reasonable amount of time, follow up with them to inquire about the status of your application. You may need to provide additional documentation or answer further questions before the bank can approve your application.
- Activate your account
Once your application is approved, you’ll need to activate your account and set up any necessary features, such as online banking or a debit card.
In conclusion, applying for a business bank account without a credit check is possible if you research your options, gather the necessary documents, choose the right bank and account, fill out the application accurately, follow up with the bank, and activate your account once approved.
Do no-credit-check business bank accounts have any limitations?
Yes, no-credit-check business bank accounts may have some limitations compared to traditional business bank accounts that require a credit check. Here are some common limitations:
- Lower credit limits: Business accounts that don’t require a credit check may come with lower credit limits. This can limit your ability to access funding or make large purchases.
- Higher fees: Some no-credit-check business accounts may come with higher fees than traditional accounts, such as monthly maintenance fees or transaction fees. Make sure to review the fees carefully before opening an account.
- Limited features: No-credit-check business accounts may not offer as many features as traditional accounts. For example, they may not offer credit cards or business loans, and they may not integrate with certain accounting software or payment processors.
- Limited eligibility: No-credit-check business accounts may have more limited eligibility requirements than traditional accounts. For example, they may only be available to sole traders or small businesses with low transaction volumes.
It’s important to carefully review the terms and conditions of any business bank account before opening an account to ensure that it meets your business needs and doesn’t come with any unexpected limitations.
FAQ
Yes, having a bad credit history can make it more difficult to open a traditional business bank account that requires a credit check. However, no-credit-check business bank accounts may be available as an alternative.
To improve your credit score, you can pay off outstanding debts, make on-time payments, and avoid applying for too much credit at once. You may also want to check your credit report for errors or inaccuracies that could be negatively affecting your score.
No, a no-credit-check business bank account won’t help you improve your credit score since it doesn’t report to credit bureaus. However, if you use the account responsibly and pay bills on time, it can help you establish a positive banking history.
Yes, you can still apply for a traditional business bank account even if you have bad credit. However, your application may be denied or require additional documentation. It’s best to speak with the bank directly to understand their eligibility requirements.
You can search online or speak with a representative from the bank to find out if they offer a no-credit-check business bank account. You can also read customer reviews and ratings to see if other business owners with bad credit have been successful in opening accounts with that bank.
Yes, a no-credit-check business bank account may be available even if you have a history of bankruptcy or other financial issues. However, you may need to provide additional documentation and may face higher fees or restrictions on the account.
No, eligibility requirements for no-credit-check business bank accounts may vary depending on the bank and account. Some accounts may only be available to certain types of businesses, such as sole traders or small businesses with low transaction volumes. It’s important to review eligibility requirements carefully before applying.
A no-credit-check business bank account is a type of account that doesn’t require a credit check for approval. These accounts are often available to business owners with bad credit or those who want to avoid a credit check for other reasons.
The specific documents required to open a no-credit-check business bank account may vary depending on the bank and account you choose. However, you’ll typically need to provide business registration documents, identification documents, proof of address, and financial statements.
Yes, some no-credit-check business bank accounts may come with higher fees than traditional accounts. These fees may include monthly maintenance fees, transaction fees, or ATM withdrawal fees.
No-credit-check business bank accounts may not offer credit cards or loans. If you need access to credit, you may need to explore other options, such as a business line of credit or secured business loan.
It depends on the bank and account you choose. Some no-credit-check business bank accounts may offer international transaction capabilities, while others may not. Make sure to review the account’s features and limitations before opening an account.
Yes, some no-credit-check business bank accounts may come with restrictions on the amount of money you can deposit or withdraw. These restrictions may vary depending on the account and bank you choose, so it’s important to review the account’s terms and conditions carefully.
Yes, you can switch from a no-credit-check business bank account to a traditional account in the future. However, you may need to undergo a credit check to open a traditional account, and you may need to meet other eligibility requirements.
To choose the right no-credit-check business bank account for your business, consider your specific needs and budget, review the account’s fees and features, and read customer reviews and ratings.