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A guide to helping you understand business bank account options when bankrupt
We’ve helped over 100,000 businesses
The best business accounts for bankrupts
If you have been declared bankrupt, it can be difficult to find a business bank account. However, there are a variety of basic business accounts for bankrupts available, which provide a range of great features.
Do I need a business bank account?
Running a business without a bank account is difficult, it may even be a legal requirement. If you operate a limited company, legally you will be required to open a business account. This is because your personal finances and business finances legally need to be separated. If you operate as a sole trader, legally you do not need a business account, but it will improve your financial management.
Will I be eligible for a business account for bankrupts?
Unfortunately, if you have been declared bankrupt it can make it difficult to open bank accounts and access credit. In many situations this difficulty continues even after you are discharged from bankruptcy.
When you open a business bank account, the majority of banks will conduct a personal credit check. This means that it is unlikely you will be approved for a traditional high-street account.
The traditional banks will have strict criteria, which could deem you to be a high risk.
However, many of the new challenger banks offer online accounts which do not require a credit check. These include; Cashplus, Tide, Anna, Countingup, CardOneMoney and Acorn. These alternative accounts are based on your being able to prove your identity, rather than a good credit rating. As there is no credit check involved your bankruptcy will not form part of their decision to offer an account.
Which features will a basic business account provide?
Although you may not be able to access some complex accounts, you may be eligible for basic business bank accounts. These accounts will provide the functionality you require, however there may be some features which are unavailable to you. Typically, basic business accounts for bankrupts will provide:
Online banking
The ability to setup direct debits and standing orders
A debit card
Cashier services through the Post Office
The potential to improve your credit rating
A quick setup with no branch visits
How to compare business bank accounts for declared bankrupts
Although your options may be limited, business bank accounts for bankrupts actually provide a range of great features. We knew it was difficult to find accounts available to those with poor credit, so we developed our comparison service.
To begin, simply select whether you are looking to switch bank accounts or open a new account. You will then be able to use the quick filters to find banks which do not conduct a credit check. You will then be provided with a list of basic business accounts for bankrupts and those with a poor credit history.
A mixture of bank accounts are included within our comparison service, so you effectively compare accounts. For example, you will be able to compare the length of free banking periods and the monthly cost of accounts. Although a bank account may provide an account with no monthly charge, you should compare the transaction costs.
You will also be able to compare the features of like for like accounts, so that you can find the ideal account. We have also included a link to the relevant bank, so that you can complete your online application.
To apply for an account, you will need your proof of address and identification, alongside some key details. These include your businesses income, address and turnover. Once you have opened your account, you may be interested in our other business comparison services. To find out more, please contact our team today.