Top 7 business bank accounts with no credit check in the UK in 2022 part 2 – Part one is here.
Table of Contents
Top 7 business bank accounts without credit check
The major banks in the UK will generally reject applications for a standard business current account if the applicant has a bad credit history. Even if the business is a limited liability company (which is a separate legal entity from the individual(s) running it), banks will still check the creditworthiness of the owners/directors.
Some banks may be more lenient than others with regard to various types of bad credit (bankruptcy, lawsuits, defaults are the worst), but in general, the bank will refuse to open an account.
Many people just need a basic business bank account with no credit checks where they can simply make and withdraw payments from the account. They don’t need overdrafts, and they don’t want to go through the process of writing a business plan for a bank. Banks in the UK do not seem to be interested in such a potential client. However, all is not lost for those in this situation.
Even if your business or personal credit score is lower than you’d like, business checking account options are still available. Our list of 7 best Business Checking Account providers don’t check your credit before they approve you and their applications are online, fast, and simple.
1.Cashplus Business Current Account
The Mastercard Cashplus Bank prepaid card is probably best known as the first and most popular prepaid debit card among consumers in the UK, with almost 2 million cards issued since 2005. What is probably less known is that Cashplus Bank also offers a prepaid Gold card. Mastercard accounts for businesses (sole proprietors, partnerships, limited liability companies) and charitable organizations with the name of the business or organization on the card.
To date, Cashplus Bank has processed around £12bn in payments for both business and consumer products. Cashplus Bank was originally authorized and regulated by the FCA, with their funds held in a regulated bank account. In recent years, they are in the process of applying for a full banking license. This application has recently been successful.
Cashplus has received a full banking license and is now a full-fledged UK bank. No credit checks are carried out and the account is guaranteed provided that suitable identification and proof of business can be presented. The only real downside is that it’s not possible to deposit checks into the account (yet). There are several business account options available, each with a slightly different fee structure. The account has the same features as a personal Cashplus prepaid checking account.
2. Tide Business Current Account
The Tide e-money Business Current Account offered by Prepay Solutions (PPS) is a current business account available to the UK registered businesses owned by individuals who wish to quickly open a business account and may or may not have an adverse credit history.
Prepay Solutions is not a bank but is classified as an electronic money issuer authorized and regulated by the Financial Conduct Authority (FCA).
The account is one of the new phone-based business accounts that can also be accessed through a standard web browser.
There is no credit check (so bad credit is not an issue) and as long as you pass an identity check and formally register your business in advance, this is as close to getting a guaranteed business bank account as possible.
In fact, this basic type of business account is in such demand that they claim that 1 in 12 new business accounts in the UK are opened with Tide. Tide currently has over 250,000 customers. You can see what people are saying about this business account on the official Tide forum.
It comes bundled with a contactless Mastercard debit card for business and has no application, annual or monthly fees. You pay only 20p for each electronic transaction to and from the account. Withdrawing cash from the card costs £1. Depositing cash at the post office or at the payment point is also subject to a commission.
3. GoSolo Business Account
GoSolo is a UK-based e-money financial services company that offers an app and an online business account for UK-based limited companies.
It is only available to UK limited companies and you must be the sole director and sole shareholder of the company.
If you don’t already have a registered limited liability company in the UK, they can also provide a registration service for free. Business accounts can be opened online in just 10 minutes. A Mastercard Business debit card is also provided with the account.
You can only make payments using online banking between UK accounts, but you can use a business debit card for international payments. You must be a resident of the UK, which you must prove by providing the relevant document.
You must also have a valid photo ID that can be compared to a selfie video. Most account features are free.
4. UK High Street Business Bank Account with Visa Debit Card
While no major UK bank explicitly offers a basic business account, the one described below is probably the closest available. This business account was introduced in 2008 and is the only business account in any UK banking institution that is specifically designed for those with poor credit history. It also targets new businesses and offers them 2 years of free banking.
This is a CREDIT ONLY account but comes with a Visa debit card and checkbook. It can be managed in the department, by phone, and, more importantly, via the Internet. This allows you to manage your account electronically (receive payments and set up direct debits/standing orders, etc.).
This business account can be applied for over the phone or at your local office by completing the application form.
5. Acorn Business Account
The Acorn Business Account offered by Spectrum Card Services Limited (the same company that offers the CardOneMoney Business Account above) is available to UK registered businesses owned by individuals who may have an adverse credit history.
This is a UK-managed checking business account with a corporate prepaid Mastercard debit card that is very similar to Cashplus and almost identical to CardOneMoney online banking accounts without credit checks above.
This “basic” business account consists of a billing account, into which business funds are deposited and withdrawn, and an attached prepaid Mastercard account for day-to-day business use.
6. Metro Bank Business Instant Access Deposit Account
Some building societies and banks in the UK also provide accounts to businesses (sole proprietors, partnerships, limited companies) and non-profit organizations (charities, clubs, and associations, etc.), usually in the form of a basic savings or deposit account, which can be managed in the usual way (by card, electronically, by phone), and sometimes at the branch with a passbook or by mail.
Some seem to be more forgiving, although the exact opening procedures for many of them seem a bit vague. Inquiries must be made in advance regarding opening requirements/procedures and what type of activity would be acceptable with these types of business accounts. An example of a prominent UK bank providing such a savings account for commercial deposits is Metro Bank.
For those who live in Greater London, the South East, and some other parts of the UK, this basic business deposit account with instant access from Metro Bank UK may be suitable. A visit to a branch (or store, as they call them) is required to apply.
7. Currensea Business Debit Card Payment Account
Currensea offers a debit card account that allows businesses to make free international payments using the Mastercard payment system. This allows businesses to save on bank transaction fees and exchange rate fees.
Payments can be made in most currencies and are debited from an external bank account by direct debit. In essence, you pay for goods and services using your existing business account, only with another debit card.
Physical and virtual Mastercards are available. A personal debit Mastercard is also available.
You can potentially save over 3% on bank transaction fees and track how much you’ve saved with the desktop dashboard and mobile app. You can register in an average of 7 minutes. No monthly or annual fees (they earn their money through the seller). The account is authorized by the FCA.
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