Compare bad credit business accounts

April 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.

Anna Money business account

Open an account in 10 minutes

Account Fee

FREE

Trust Pilot

4.4

Good for

  • Open an account in 10 mins
  • Creates, send & chase invoices
  • Calculates taxes & VAT
  • 24/7 help & support

Need to Know

  • No loans or overdrafts
  • Aimed at startups, small businesses & sole traders
  • No branches
  • No Apple pay, Google pay or Samsung pay
Revolut Free account

Open an account in 3.5 days

Account Fee

FREE

Account

Trust Pilot

4.5

Good for

  • Local accounts in GBP and EUR
  • Automate accounting with Xero, QuickBooks, FreeAgent, Sage and more
  • Hold and exchange 28 currencies at the real (interbank) rate

Need to Know

  • No loans or overdrafts
  • No branches
Lloyds Bank Start up

Open an account in within 4 weeks

Account Fee

FREE

for 12 months, then £7 per month

Service Quality Score

56%

Good for

  • Cardnet online payment management
  • Inter-Bank agency agreements
  • Bulk payment services
  • Free business guides

Need to Know

  • Lloyds Bank has temporarily stopped accepting applications from customers looking to switch their business.
  • Applications from customers who do not currently have a business account are being accepted.
Bank of Scotland Start up

Open an account in within 4 weeks

Account Fee

FREE

for 12 months, then £7 per month

Service Quality Score

56%

Good for

  • Cardnet online payment management
  • Inter-Bank agency agreements
  • Bulk payment services
  • Free business guides

Need to Know

  • Bank of Scotland has temporarily stopped accepting applications from customers looking to switch their business.
  • Applications from customers who do not currently have a business account are being accepted.
Tide Business Current Account

Open an account in 1 Day

Account Fee

FREE

Trust Pilot

3.9

Good for

  • Card payments, UK and abroad: Free
  • Free tools for accounting and invoicing
  • Take a photo of receipts, Tide finds the matching transaction
  • Mobile app/online access

Need to Know

  • No overdraft facility but loans can be approved
  • Bank transfers (in or out) – 20p
Revolut Grow account

Open an account in 3.5 days

Account Fee

£25

Growth Account

Trust Pilot

4.5

Good for

  • Ecommerce: accept payments on your checkout page and with platform plugins
  • Exchange money with no hidden fees: hold money in 28 currencies
  • Create accounts and cards for each team member, client or office

Need to Know

  • No loans or overdrafts
  • No branches
First trust business current account

Open an account in 10 Days

Account Fee

£9

per quarter

Service Quality Score

45%

Good for

  • Overdraft and loans
  • Flexible internet banking

Need to Know

  • Can’t apply directly online, you must first speak with a Relationship Manager
Cashplus business account

Open an account in 4 minutes

Account Fee

First year FREE

Then £69 annually

Trust Pilot

3.3

Good for

  • Offers for Swoop customers:
  • Earn 1% cashback on qualifying card spend each month
  • Annual fee of £69 waived for the first year
  • Integrated to all leading accountancy packages
  • Instant online decision when opening a new account
  • No credit checks

Need to Know

  • Overdrafts only offered upon invitation
  • No branches (however, branch presence at the Post Office 11.5k branches)
CardOneMoney Business Account

Open an account in 4 hours

Account Fee

FREE for first 3 months then £12.50 per month

+ an application fee of £55

Trust Pilot

4.3

Good for

  • No credit checks
  • 24/7 Support and access to your account
  • Account Manager

Need to Know

  • No loans or overdrafts
  • Aimed at small businesses
Fair Everywhere business account

Open an account in 4 hours

Account Fee

£12.50 per month

+ an application fee of £55

Trust Pilot

3.2

Good for

  • Great currency rates
  • No credit checks
  • Make and receive payments all over the world

Need to Know

  • No loans or overdrafts
  • No branches
  • £55 application fee

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

ZBank of Scotland Switcher

Open an account in Not accepting accounts from switchers at this time

Account Fee

FREE

for 12 months, then £7 per month

Service Quality Score

50%

Good for

  • Cardnet online payment management
  • Bulk payment services
  • Free Business Guides

Need to Know

  • Bank of Scotland has temporarily stopped accepting applications from customers looking to switch their business.
  • Applications from customers who do not currently have a business account are being accepted.
ZLloyds Bank Switcher

Open an account in Not accepting accounts from switchers at this time

Account Fee

FREE

for 12 months, then £7

Service Quality Score

56%

Good for

  • Cardnet online payment management
  • Bulk Payment Services
  • Free Business Guides

Need to Know

  • Lloyds Bank has temporarily stopped accepting applications from customers looking to switch their business.
  • Applications from customers who do not currently have a business account are being accepted.
Danske small business bank account

Open an account in Not accepting accounts from switchers at this time.

Account Fee

£12.50

per month

Service Quality Score

63%

Good for

  • Dedicated business advisers in each local branch
  • Tools to help with business development

Need to Know

  • Due to Covid-19 account applications are not being accepted.
Bank of Ireland business current account

Open an account in 12 Days

Account Fee

£25 per quarter

Service Quality Score

50%

Good for

  • An additional current account, a savings account and a business credit card all in the one application
  • Online, mobile and telephone banking

Need to Know

  • Due to Covid-19 account applications are currently taking longer than usual to process.

* 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. 

Don’t waste time – there are plenty of funding and saving
solutions to help your business grow

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