Business Bank Accounts - No Credit Checks

Yes, it is possible to open a business bank account with a county court judgment (CCJ). Business bank accounts with no credit checks don’t run a hard credit search when you apply for an account. That means that if you have poor credit or little credit history at all, you can still apply for an account.

Providers may run a credit search depending on the type of business account you apply for. Most banks run a hard credit search if you apply for a traditional business bank account. Business bank accounts with no credit check don’t require a credit search when you apply for an account.

It depends on the type of business bank account you apply for. Applying for a traditional business bank account may affect your credit score because providers run a hard credit check when you apply for an account, which may affect your credit score. Your credit score is unlikely to change if you apply for a business bank account with no credit check because providers do not look through your credit history when an application is made.

Some lenders look at both your personal credit history and your business credit history when you apply for a business bank account. So a poor personal credit history may impact on your ability to access financial products for your business.

If you are a sole trader, any bank accounts with an overdraft facility will appear on your credit report. That’s because your business is not legally separate from you and your finances are considered one and the same. If you have a limited company, your business accounts will show up on your business credit report rather than your personal credit file. It is treated differently because a limited company is considered a separate legal and financial entity.

If you set up a limited company, the business is considered a separate legal entity to you and will have its own business credit score. Having a good business credit score can help you access a wider range of business finance at lower interest rates, while a lower business credit score can limit the products available to your company.

Yes, it is possible to be a director with bad credit because a limited company is a separate legal entity from you, so your personal credit score may not directly affect the business.

These simple tips can help to improve your business credit score:

• Pay invoices on time: Paying your creditors on time shows that your company is reliable with repayments and good at managing money.
• File accounts on time: Filing business accounts with Companies House and tax returns to HMRC on time can help improve your credit score.
• Limit credit applications: Making lots of credit applications can negatively affect your credit score, which could affect your chances of being approved for credit.

Not all banks offer business bank accounts with no credit checks. It’s always worth checking the terms and conditions of the business accounts on offer before applying. If anything is unclear, get in touch with their customer service team for clarification.

In the UK, if you have a limited company you need to open a separate business bank account because a limited company is a separate legal entity to you, so you have to keep your personal finances separate from your business ones. It is possible to use a personal business account for company expenses if you are a sole trader. But this can make managing your company finances tricky. It may be easier to keep more accurate records by opening a separate business bank account.

A business bank account application may be denied for many reasons including if:

• You don’t meet the provider’s eligibility requirements.
• The identification documents you provided are invalid.
• You have a fraud conviction.
• You’re suspected of money laundering.
• You have a poor credit history.

It’s worth asking a lender why you have been refused a business bank account. If it is related to incorrect information in your application or sending the wrong documents, you may be able to reapply with the correct details. If you have been refused due to your credit history, it may be worth considering a no credit check business bank account or a prepaid business bank account, which does not run a credit search during the application process.