If you need to open a basic business bank account but have bad credit then your best option is to look for a bank or provider that will not perform a credit check on you during the application process.
All the mainstream banks will check your credit file and if they see any sign of adverse credit will almost certainly decline your application, so opening an account with the likes of Barclays, HSBC, Lloyds, Nat West or Santander will not be an option.
There are however a growing number of new business banking providers who will base their decision on your identity and the nature of your business, so whilst they will consider themselves as a basic business bank account, the truth is they often offer all the same banking facilities as the mainstream banks but without the branch network, so more online or mobile banking.
If I open a basic business bank account, which one is the best?
As the number of basic business bank account providers grow, so does the variety of things they offer and how they work, so it is important to make sure you choose the best one for you and your business.
Whilst they will all offer online and mobile banking, offering Faster payments via a UK sort code and account number, the way they charge will almost certainly vary, with some offering no monthly fees but higher transaction charges, with others offering a set monthly fee with a fixed number of included transactions, so with such a variety it is wise to find the best option available.
Another important factor is the type of services they offer, so most will only allow online transactions which is not suitable if you have cash or cheques that you need to deposit, plus whilst most offer Direct Debits and Standing Orders, their are other that will not, so again it is wise to source the best basic business account to work with your business needs.
Do you need a multi-currency requirement like Euros or American Dollars? If so there will be options available that may look more expensive that other options but if they have a built in International facility, your FX charges will almost certainly be cheaper using that type of basic business account instead of a dedicated UK one, so worth checking that before making an application.
Other’s too may offer built in Accountancy facilities, meaning you can wrap your banking and accounting into the same facility, making it easier when it comes to calculating your end of year accounts.
So whilst getting declined by a mainstream bank might appear to be problematic, there are plenty of alternative basic business accounts available, some of which might actually work better and more cost effectively than their high street alternative.
Your challenge then is to find the best one to suit you and your business.
Need some help with opening the right basic business account? Speak to one of our advisers to see how we can help you choose the best option for your business.
Telephone 020 3286 3929 or Apply Online