Compare bad credit business accounts

July 2021

Need a new business bank account but worried about your bad credit history?


You can easily open a UK business bank account online with no credit check, in as little as 4 minutes. Compare your options below to find a business bank account that suits your needs.

For a personalised banking report, and access to tailored funding and savings opportunities for your business, simply register here.

Barclays Start-up business account

Account fee

Free for 12 months, then £6

Opening time

Within 3 weeks

Bank transfers

From £0.35

Invoicing

done

Overdrafts

done
star

12 months FREE banking

Anna Money business account

Account fee

Free

Opening time

10 mins

Bank transfers

Free

Invoicing

done

Overdrafts

close

Calculates taxes & VAT for you automatically

GoSolo business bank account

Account fee

Free

Opening time

10 mins

Bank transfers

£0.20

Invoicing

done

Overdrafts

close

New Limited company registration

Revolut Free account

Account fee

Free

Opening time

3.5 days

Bank transfers

£0.20

Invoicing

close

Overdrafts

close
star

Hold and exchange 28 currencies at the real (interbank) rate

Cashplus business bank account

Account fee

No monthly or annual fees, just an initial £9.95 card fee

Opening time

4 mins

Bank transfers

First 3 free and then £0.99

Invoicing

close

Overdrafts

done
star

Integrated with all accounting packages

Tide Business Current Account

Account fee

Free

Opening time

1 day

Bank transfers

£0.20

Invoicing

done

Overdrafts

close
star

Free tools for accounting and invoicing

Lloyds Bank Start up

Account fee

FREE for 12 months, then £7 per month

Opening time

Within 4 weeks

Bank transfers

Free

Invoicing

close

Overdrafts

done
star

Interbank Agency Agreements

Bank of Scotland Start up

Account fee

FREE for 12 months, then £7 per month

Opening time

Within 4 weeks

Bank transfers

Free

Invoicing

close

Overdrafts

done
star

Interbank Agency Agreements

Revolut Grow account

Account fee

£25 per month

Opening time

3.5 days

Bank transfers

First 100 free then £0.20

Invoicing

close

Overdrafts

close
star

Ecommerce: accept payments on your checkout page and with platform plugins

Barclays Switcher business account

Account Fee

From £6

Opening time

Within 3 weeks

Bank transfers

From £0.35

Invoicing

done

Overdrafts

done
star

Multiple tariffs to suit your business

CardOneMoney Business Account

Account fee

FREE for first 3 months then £12.50 per month + an application fee of £55

Opening time

4 hours

Bank transfers

£0.30

Invoicing

close

Overdrafts

close
star

No credit checks

Fair Everywhere business account

Account fee

£12.50 + £55 application fee

Opening time

1 day

Bank transfers

£0.30

Invoicing

close

Overdrafts

close
star

Great currency rates

The listings below are for information purposes only. These accounts are not currently open for applications.

ZBank of Scotland Switcher

Account fee

Free for 12 months then £7 after

Opening time

Lloyds Bank has temporarily stopped accepting applications from customers looking to switch their business.

Bank transfers

£0

Invoicing

close

Overdrafts

done
star

Interbank Agency Agreements

ZLloyds Bank Switcher

Account fee

Free for 12 months then £7 after

Opening time

Bank of Scotland has temporarily stopped accepting applications from customers looking to switch their business.

Bank transfers

£0

Invoicing

close

Overdrafts

done
star

Interbank Agency Agreements

* Swoop’s service features a selection of providers from whom we receive commission.

Don’t despair – it’s still possible to open a new business bank account with bad credit. Many small business owners in the UK are impacted by their bad credit history, but there’s no need to let bad credit prevent you from starting and running a prosperous business.  

Negative credit scores can seriously affect your finances; it can make it difficult to apply for financing such as loans, mortgages or even bank accounts. But, even if your credit history includes bankruptcy or a County Court Judgement (CCJ), it is still possible to open a business bank account. Thankfully, there are several banks who don’t require a credit check in order for you to open an account with them.


How to open a business bank account with bad credit 

In most cases, opening a business bank account is conditional to a credit check. This is the first hurdle you may fail at when looking to open a business bank account. 

The bank will run a search on your credit history and establish your credit worthiness. However, there are a number of business bank accounts that do not run credit checks, therefore giving customers the ability to get up and running with a new account incredibly fast (in as little as 4 minutes, so almost instantly!). AnnaTide, Cashplus, CardOneMoney, as well as Fair Everywhere all allow customers to set up business bank accounts without running a credit check. If you’re looking for ways to compare them, you can utilise our comparison table to decide which account is the right fit for you. 

Business accounts that offer no credit checks often offer very similar services to regular business accounts. Notable differences are usually that they will not offer an overdraft. However, you should expect to still receive the following services:

  • Pay invoices
  • Access online and app banking
  • Online accounting tools
  • Direct Debits and standing orders
  • Make and receive payments
  • ATM withdrawals
  • Debit card
  • Bank transfers 


Challenger Banks are more likely to take on customers with a bad credit score

Challenger banks have begun to revolutionise business banking similar to how we have seen Revolut and Monzo gather millions of personal banking customers. Challenger banks have risen since the financial crisis to offer an alternative, often to SMEs who are looking for more flexible and digital solutions to perform their day to day banking needs. 

Challenger banks are more likely to offer innovative solutions and integrations into other services you might use as a business owner such as accounting software. 

Another key aspect challenger banks have focused on for customers is speed to open an account. It is a lot quicker to open an account on average with a challenger bank over a traditional bank as the system tends to be streamlined and can be done in most cases without needing to interact with a human. This can be a huge win for business owners who are seriously time stretched and need to get accounts open quickly.


How can I improve my credit score?

If you still want to bank with a traditional bank, then there are a number of ways that you can start to get your credit score moving in the right direction. 

To get started, you may want to get a credit report and get to know your score. Our friends at Credit Passport will allow you to see your score for free. 

Here are a number of ways you can affect it in a positive way:

  • Check for mistakes on your file. Even having just a slightly wrong address can affect your score. So make sure you check all the details and report any incorrect information straight away.
  • Pay your bills on time. Paying a phone landline or internet contract on time is a great way to prove to lenders that you can manage your finances.
  • Keep your credit utilisation low. Your credit utilisation is how much of your available credit limit you use. For example, if you have a credit limit of £2,000 and you’ve used £1,000 of that, your credit utilisation is 50%, so you’re using half of your credit limit. Usually, using less of your available credit will be seen positively by lenders, and will increase your credit score. If possible, try to keep your credit utilisation at 25% or lower.
  • High levels of existing debt. Ideally, you should pay off any outstanding debt before applying for new credit. This is because banks, building societies and credit card companies might be hesitant about lending you more if you already have a lot of debt.
  • Register on the electoral roll. If your name’s not on there, you’ll find it much harder to get credit. Go to the GOV.UK website to find out how register to vote online or by post.


How to compare business current accounts for customers with bad credit

At Swoop, we offer an independent business bank comparison table so you can easily compare which bad credit business current account will work for you. You can compare business accounts on Swoop across monthly fees, overdrafts, speed of opening, invoicing, mobile app, free banking, foreign exchange and more. 

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