We are often asked if opening a business bank account possible with bad credit and the answer if always YES!
Although opening a business bank account with a high street bank will be challenging, there are plenty of options available.
The biggest issue with the high street banks is they will perform a credit check on you.
As such anyone with adverse or bad credit will often get declined.
That then limits your options opening a business bank account with any other high street bank.
As when they check your credit file, they will see you have already been declined.
So what options will be available if I get declined by a high street bank?
There are a number of options when looking to opening a business bank account.
The main thing to consider is what do they offer and will they accept you?
First, will they accept your application?
Assuming you have full identification documents and can prove your home address, then yes that helps.
The next thing is your business activity, as some activities are considered as high risk.
So opening a business bank account for a business considered as high risk will limit your options.
So anything that involves money service, gaming, crypto currencies, adult entertainment could cause an issue.
If your business activity is not one of these, your options of opening a business bank account will significantly increase.
What sort of banking facilities will be available?
With all options outside of the high street banks, you can expect to have access to full banking facilities.
All providers are full regulated by the FCA, meaning your money is always safe.
So sort code & account number, with online and mobile banking is now standard.
Setting up Direct Debits and Standing Orders is also considered more standard.
A debit or bank card will also be included with all accounts.
Whilst there will be no direct branch network available, often the Post Office will support many of these online banking providers.
This means you can pay or withdraw cash at these, although limits may apply.
With a guarantee of no credit checks, anyone with any sort of adverse credit can apply.
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