Compare Bad Credit Business Bank Accounts

What is a bad credit business bank account?

A bad credit business bank account is a corporate account that can be set up without requiring a credit check. In most cases, these accounts get approved almost immediately. However, business accounts for bad credit tend to be basic, with limited features.

If you have a poor credit history or bad credit, you might be wondering whether you can apply for a business bank account, and the answer is yes. There are plenty of providers out there willing to accept your application without running a credit check.

But what are the ramifications of having a bad credit business bank account? Although providers can offer you accounts, they can be restricted - for example, providers might not offer you a credit facility or prepaid business cards.

What can I use my bad credit bank account for?

These bank accounts are helpful for businesses that want to stay on top of their finances. Remember, if you operate a limited company, it is a legal requirement to set up an account for your business. More than being a legal requirement, business bank accounts allow you to:

• Separate personal and business finances: When running a business, it’s smart to keep your accounts separate in order to allow accurate recording of your finances and tax requirements.
• Access business funding more easily: A number of the lenders that we work with require companies to have a business bank account set up before they borrow money.
• Improve your credit score: Using your bad credit business bank account, you can work to improve your credit score over time and prove yourself to be a reliable borrower.
• Reputation building: When you have a business bank account, you may find your clients take you more seriously when it comes time to invoice.

What are the features of basic business bank accounts?

As mentioned, when you have bad credit, you may only be able to apply for a basic business account. This means that the features you have at your disposal will be limited. Generally speaking, basic business bank accounts allow you to:

• Obtain a debit card
• Withdraw cash at ATMs
• Set up direct debits for bill payments
• Pay for goods and services online and in-store
• Send & receive money

You won’t however, be able to benefit from additional services such as invoice management, overdraft facilities, free travel insurance etc. It’s also important to note that with these accounts, you may face fees for certain transactions and payments.

Am I eligible for a bad credit business bank account?

To apply for a bad credit business bank account, you must own a limited company or run a sole trader business. Each provider will have their own eligibility criteria that your business will need to meet, but you won’t be tied to the same credit score requirements that normal business bank account applications call for.

Please note, although some providers let you open a bank account online with no credit check, some lenders may still run credit checks to determine account suitability. You will be told before a credit check is conducted.

What is the best bad credit business bank account for 2021?

The answer depends on what you consider the ‘best’ for your business. Maybe you’re looking for a bank account that has an initial free period, or a completely free forever bank account - and maybe you want the option to customise your account with add ons.

We update our table above consistently to ensure we’re showcasing the best free business bank accounts on the market. So you can rest assured that the accounts listed above are up-to-date.

Check out our latest bank account deals.

How do I apply for a bad credit business bank account?

Applying for a business bank account for bad credit in the UK is quick and easy. All you have to do is compare the accounts we’ve got in our table above and click through to each provider’s dedicated page. On these pages, you’ll learn about the provider’s specific eligibility requirements, the features and benefits of choosing an account with them, and key information about the deal itself.

Once you’ve settled on the right provider for you, simply click on the ‘go to site’ button to visit the provider’s website. From here, you can complete your bank account application.

Remember, just because you choose a provider doesn’t mean you can’t switch providers for a better deal in the future. Once your credit score is in better shape, you might want to move to a new provider that offers your business greater benefits. You can switch bank providers at any time - just come back to us and compare deals again.

How can I improve my business credit score?

If you want to improve your business credit score and be eligible for a wider variety of bank accounts, there are some steps you can take:

• Make timely invoice payments - we know this isn’t always easy. The UK has a late payment problem that means many businesses are trapped in a vicious cycle of late and non-payment. Where possible, pay your creditors on time to prove that you are reliable with paying off money.
• File tax returns by the deadline - one way you can improve your business credit score is to file your accounts with Companies House and tax returns to HMRC in good time.
• Limit the number of credit applications you make- making lots of credit applications (particularly when you have bad credit), is one sure way of negatively impacting your score. Hold off on applying for funding until you’ve paid off all debts.

Can I open a business bank account with no credit checks?

Yes, you can. Although some business bank account providers will not require a credit check on the owners or directors upon opening the account, your options and features with a no credit check business account may be limited.

Do bad credit business bank accounts come with a debit card?

Yes, most bad credit business bank accounts do come with a visa debit card option. This is a great option for businesses who frequently need to withdraw money or make purchases at shops.

Can I get a business bank account with a CCJ?

If you have a CCJ (County Court Judgments), you may find it challenging to open a business bank account. However, there are options out there that accept businesses with county court judgements, previous defaults and poor credit history.

Why choose Capalona to compare bank accounts for poor credit?

When getting a bank account with bad credit, you may feel frustrated and despondent. Remember, bad credit is never the end of the world and you can always work to improve your score for the future.

At Capalona, we’re a broker, which means we aim to help you find and compare the best bank account deals on the market right now. We’re authorised and regulated by the Financial Conduct Authority and we’ve helped thousands of startups and SMEs, so let us help you too. We don’t care what your credit score is, we care about providing you with options!

Our business account comparison tool is completely free for you to use and can help make the task of finding the best value business bank account that little bit easier. Check out the account deals in the table above, read about each provider at your leisure, and apply for your bad credit business bank account. It’s really that simple.

Compare Now