There are a number of reasons why you would get declined for a business bank account, however the main three reasons are listed below.
As every high street bank will perform a credit check, if any of the directors or main shareholders has a poor credit rating, then your application will get declined for a business bank account.
This is because every bank will perform a credit check on the individuals, so once they see you have had a problem, then your application is destined to be declined.
So it is important to maintain your credit repayments at all times.
High Risk Business activities
Any business that is considered to be high risk will also be declined, as many fall outside of the bank’s risk appetite.
This will include, MSBs (money service business), adult entertainment, Gambling, Crypto Currency, some Investment type businesses and any others the banks consider to be ‘risky’
Non UK Resident Directors & Shareholders
For those who reside outside of the UK, then opening a business bank account can be problematic.
Generally speaking, most UK registered Limited Companies with non UK directors will struggle with high street banks, as they find it difficult to check those unless they reside in the UK.
This makes it very difficult to open any business banking facilities as non UK resident, even if the directors travel to the UK to apply personally.
With all of these circumstances, there will be alternative options available, so if you have been declined for a business bank account, there will be alternative options available.
Our suggestion in any of these circumstances would be to open anything that is available with a view to looking at what alternative options may be available at a later stage.
Have you been declined for a business bank account and need some help? Contact us on 020 3286 3929 or Apply Online