What Happens if Your Bank Stops Serving Businesses?
If your bank gets acquired, stops opening new accounts or announces plans to close accounts, here's what to expect.
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Two banks, HSBC and LendingClub, have announced plans in 2025 to move away from business accounts.
Banks occasionally zero in on specific types of customers. They may stop accepting applications from other types of customers as a result. They also might sell off portions of their business to other banks or close accounts entirely.
I’ve seen this most from online banks and fintech companies. Fintech startup Oxygen, for instance, announced in 2024 that it was closing all deposit accounts. But traditional banks like HSBC may also do this as they narrow their focus on certain types of customers.
There’s one other type of transaction that can affect business owners: a sale or acquisition.
There have been 23 of these so far in 2025, mostly involving small local banks and credit unions, according to a tracker published by Pacific Coast Bankers’ Bancshares. In these cases, you may not have to take proactive steps yourself — but it’s wise to understand your options anyway.
Here’s what you need to know if your bank ever stops supporting your business account.
1. Your account won’t vanish immediately (but it might eventually)
LendingClub stopped accepting applications for new accounts, but told NerdWallet in February that it will continue to support existing ones. Its business account holders can keep operating as usual for the foreseeable future.
In May, HSBC told the Wall Street Journal that it would exit the small- and medium-sized business market, affecting around 4,400 clients. Those businesses will have to switch to other banks, but will receive ample notice before that happens, an HSBC spokesperson told NerdWallet.
And in July, Seacoast Bank completed its purchase of Florida's Heartland National Bank — one of this year’s 23 acquisitions so far.
Heartland customers will be converted to Seacoast accounts during the weekend of Aug. 15. After that, they’ll no longer be able to access their Heartland bank statements or use their old debit cards. Instead, their branches will rebrand as Seacoast branches and they’ll be able to log into a new online banking platform.
To avoid missing any information from your bank, double-check that your contact information is up to date. Make a habit of opening your bank’s mail and secure messages. Your bank should share plenty of information about deadlines — but it’s up to you to notice and remember them.
2. You should start looking for your next bank
Even if your bank says it will keep supporting business accounts, it’s unlikely they’ll keep rolling out new features. You should want a bank that invests in small businesses.
For that reason, take time to review other business banks. Your banking experience is going to change anyway — so you might as well pick something you like.
First, reflect on what worked well with your old bank. Then, research a few other business checking accounts to see what competitors offer.
For instance:
Lots of banks offer free business checking accounts, if you want to avoid a monthly fee.
A few checking accounts pay more than 1% APY, way above the national average.
A handful of online business bank accounts have free wire transfers.
Some online banks include built-in invoicing, tax planning tools and integrations with accounting software.
Second, if your bank is moving you to a different institution automatically, dig into it. Check on:
The bank’s schedule of fees. How do they compare to what you’re paying now?
Their branch and ATM locations. Is it possible your current branch will close? If so, are other branches convenient for you? What ATMs will you be using?
Other services. Does the new bank offer merchant services or a credit card, if you use them? How do their rates compare?
If your first few months at the new bank go well, you may decide to stick with it. That’s fine. What matters is that you thought about your options.
3. Switching will take time
It can take months to switch business banks. The sooner you start, the better.
If your business has a savings account, move those funds first. Since you probably touch them less often, it shouldn’t be too disruptive to your business. Plus, when you transfer large amounts of money, you may encounter longer hold times on your funds.
Next, open a new business checking account and fund it with some of your savings. Transfer your bills over to the new account. Notify any customers that pay you via check, ACH or wire transfer.
After a month or two of smooth operations, you can use the new account as your primary one.
You can close your old account if you want to. But if it doesn’t charge a monthly fee or require a minimum balance, you can keep it open.
Many businesses use multiple bank accounts, and it’s a good idea in general. That way, if one of your accounts isn’t accessible or is undergoing a transition, you’ll have some funds you can rely on until things get ironed out.
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