If your personal or business credit score is on the low side, you may struggle to get approved for some business bank accounts.
This is because most UK banks carry out a credit check before approving applications. Credit checks can even be carried out on owners or directors of limited companies. Even if you’re able to pass these checks, they can still take time to carry out.
If you have a poor credit history but need a bank account for making and receiving essential business payments, don’t worry. Some banks are more lenient than others, meaning you can get a business account with no credit check.
Plus, there are alternatives available, including Wise for Business. You can open a Wise Business account online with no credit checks, and start making and receiving international payments almost immediately.
Businesses or business owners with a poor credit score will be limited to the types of accounts and banks they can choose.
But the good news is that yes - you absolutely can get a business bank account with bad credit. You may face some limitations in terms of features, but you’ll still be able to access the essential business banking services you need.
We’ll be looking at just a few of the options available to you later in this guide.
Just because no credit check is carried out, this doesn’t mean you won’t need to provide some proof of ID and other documentation. Here’s what you’re likely to need¹:
- Proof of ID - such as a valid passport, UK photocard driving licence or certified copy of birth certificate
- Proof of address - such as a recent utility bill, rental agreement, bank statement, credit card statement or council tax statement.
You may also be asked for documents relating to the insolvency status of your business.
Need a bank account for your business, right away? We’ve rounded up some of the best business bank accounts with no credit checks. Let’s take a look:
Wise for Business is one of the options that you can consider if you’re looking for a cost-effective and quick to open business account. It's free to receive international transfers in different currencies through the multi-currency account, and if you need to convert them you’ll always get the real, mid-market exchange rate.
You can Hold 50+ currencies in your account at once, switching between them when you need to, and pay invoices in just a few clicks. You can manage your account using the handy Wise app, and even integrate with accounting software such as Xero and Quickbooks. You can also take advantage of:
- Fast and cheap local and international transfers
- Multi-currency account for business with a debit card
- Easy access to account statement through the app and website
- Integration with accounting software
- Direct debit in EUR, GBP, USD and AUD for recurring payments
Cashplus has a business current account specially designed for small businesses, especially those needing basic banking services quickly. There is a low annual fee to pay, but after that you won’t pay monthly maintenance fees. It offers:
- Faster payments in and out
- Business expense cards
- Integration with accounting software
- 24/7 account management through the Cashplus mobile banking app
- Deposit and withdraw cash at the Post Office.
Cashplus promises a fast, easy online application process, with no credit checks required to open an account. You could have your new account number and sort code in as little as 4 minutes.
Revolut Business account is an online-only account which can be managed via the Revolut app. The account offers the following features:
- Smart company prepaid debit cards for local and international spending
- Automate expenses and capture receipts within the Revolut app
- Integration with accounting software such as Xero or QuickBooks
- 24/7 customer support.
Revolut doesn’t do credit checks for business current accounts, only if you want to apply for any lending products⁴.
The CardOneMoney account is ideal for self-employed sole traders, partnerships and Limited companies with a low credit score. You’ll get standard business banking features including Direct Debits, plus:
- Bill payment service
- Up to 4 prepaid Corporate Mastercards
- Online, text and phone account access
- UK call centre
- Free text alerts to keep track of transactions.
It costs £55⁶ to apply for an account but there are no credit checks. All you’ll need is to verify your ID, address and the insolvency status of your business.
The Acorn Account for Business is an online account offering a new type of business money management. You’ll get your own dedicated account manager, who helps you set up direct debits and manage your invoices. Here are just a few of the key features:
- Online payment system to help you track bills, invoices, receipts and wages
- 24/7 access online or via your smartphone
- UK-based customer support
- Instant statement downloads
- Pay in cheques and withdraw cash from branches of Barclays.
Acorn promises you can open its business account in as little as 24 hours, with no branch visits or physical signatures required. Crucially, you can still be accepted even if you have a low credit score and there’s no account opening fee⁸.
The above accounts are decent options for making and receiving business payments in the UK, but if your business trades overseas or intends to in the future, consider trying a Wise multi-currency account.
With a Wise Business account you can make international payments cheaper than with a bank⁹ - and up to 19x cheaper than PayPal. It's free to receive money, and if you need to convert currencies you’ll always get the real, mid-market exchange rate.
So, if you or your business has a patchy or even downright terrible credit history, don’t panic. There are still plenty of business bank accounts to choose from, including Wise - the perfect solution for low-fee international money transfers.
Sources used for this article:
- Acorn FAQ page - Identification requirements
- Cashplus Website
- Revolut website
- Revolut website
- Cardonemoney website
- Cardonemoney website - fees
- Acorn website
- Acorn article - How it works
- Wise comparison page
Sources checked on 7-March-2021.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
In this guide, we’ll take a look at what’s on offer from Lloyds business banking, including account types, features and of course, fees. So, let’s get started.
There are lots of options when you want to open a business bank account. Read this article to find out how to open a business account with Barclays.
In this guide, we’ll delve into the types of Royal Bank of Scotland business bank accounts available, including their main features and fees.
Even better for small businesses, Clydesdale also offers a generous fee-free period. This means you can test out the account and keep banking expenses to a mini
Everything you need to know about opening a limited company bank account, including the best options available and how to apply.
Looking for a business bank account? Read this article to find out more information about the Tide business account