Business bank accounts for bad credit

  • Free invoice and accounting software provided by Freshbooks, with your Barclays business account. T&Cs apply
  • Charges for some bank transfers and card payments apply

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Our comparison service features a selection of providers from whom we receive commission. This table is ordered according to our commercial arrangements.

We only work with providers who we trust to provide a great deal and a fantastic service.

How we've helped businesses with bad credit

Even if you have a poor credit history, we can still find you the best deal

  • We compare the best bank accounts for bad credit

  • Including no credit check business accounts

  • Along with a switcher guarantee scheme

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If you are having trouble setting up a business bank account or switching from your current one, then there are still options available where you can avoid credit checks.

What they offer:

  • Debit cards

  • Online banking

  • The ability to pay into post offices or other establishments

  • Potential improvement on your credit rating

  • Quick setup and going to the branch is not required

Fees on the account can be paid monthly or annually. The account is simple and easy to use and it can also be cheaper than a standard business bank account!

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Business banking for bad credit explained

Even though having a bad credit history can cause a lot of worry for many businesses, there are still other business banking soltions solutions available and a lot of firms are unaware of their options.

Although your options are limited due to your bad credit history, it does not mean that it is impossible for you to get a business bank account. Bad credit business bank accounts are a good option for those with a bad credit history because a lot of providers allow you to apply with no credit check.

Financial services are essential to all enterprises, which means it is very important that you have a full business bank account. Unfortunately, those with bad credit can struggle with this, bad credit business accounts will let the majority of businesses who apply with bad credit open and manage an account, regardless of their poor credit history.

This can include direct debits, multiple debit cards, online banking and even overdrafts. These accounts are also much quicker to setup now and for some businesses they can be cheaper than high street banks.

Benefits for bad credit bank accounts

Get an overdraft and free direct debits

Many accounts for businesses with poor credit will offer an overdraft facility, however, this is generally dependent on passing certain criteria. These accounts now also offer the option to set up direct debits.

Helping you improve your credit rating

Running an account sensibly over a sustained period can help improve your credit rating. As you build your credit over time it puts you in a better position in the future to switch business accounts.

No credit check business account

There are generally no credit checks when opening a bad credit business bank account and in many cases approval can be almost immediate, which means your business can begin managing its cash flow as soon as possible offering a piece of mind to yourself and your business.

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4 steps to improving your business' bad credit

Whether you like it or not, your credit score makes a huge impact on the road your business leads. You may believe ignorance is bliss but when it comes to a low credit score it is not something that can be ignored.

So what are the first steps of improving your bad credit?

Monitor your credit report

In order to monitor your credit report you must ensure that the information you have provided is correct – this means that if there are accounts associated on your report that aren't actually yours then you must remove them, as this will affect your credit score. Any negative information that is from over 7 years ago should not be included in your credit report. Any bankruptcies older than 10 years must also not be shown on your report.

To access you credit report you can visit; Equifax, Experian and Transunion.

Set up automatic payments

If your business has a loan or credit card that requires monthly payments, then it is beneficial to organise the payments to come out automatically – making payments on-time is an important factor to your credit score.

Avoid applying for unneeded credit

Applying for credit can add negative points which can affect your score in the long-run. Filling out just one application can add up to 5 points to your credit rating. After filling out 5 unnecessary applications you have added 25 pointless negative points to your report.

Don't let debt get carried away

If there is an issue with a vendor then by all means necessary do not let it go to a collection, as this will have a huge impact on your report. If you have to, pay under protest – this will lead to the small claims court. However, NEVER let it get to the point of being sued. Judgements and lawsuits are extreme hits to your report.

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