Basic bank accounts
UK banks are more than likely going to reject business owners and directors who apply for a business current account if they have a poor credit history. Regardless of the company type for example; a limited company (a company which is a separate legal entity) – banks will still run a credit check on the directors and owners as standard.
Numerous banks will be more lenient with businesses, however this depends on the reason for the poor credit history. There are two types of bad credit which will not be overlooked, they are; bankruptcy and County Court Judgements.
Generally the bank will often decline a business because of the poor credit history, another reason for them declining the account is if the business owner or director has recently moved to the UK, or moved back therefore they are unable to provide the bank with any credit history.
For many directors and owners they just want to keep their personal finances separate to their businesses finances. Basic business bank accounts could be a cheaper option compared to the complex and pricey bank accounts.
As you are self-employed it is acceptable to use your personal current account. But, be aware that the bank can add fees onto your account if they see numerous transactions, which would ultimately turn into a business bank account.
Interested in a basic business bank account?
Why not try out our bank account finder? This is a free, no-obligation tool that will help you find the most suitable account for your business.
Benefits of basic current Accounts
Online Accounts
As with any bank account you can manage your account online and setup direct debits
Pay into local Post Office branch
You will have access to pay money and cheques into any post office branch and some may also have access to a high street bank
No credit checks
The process is very quick and does not involve a credit check. You will just need to confirm your ID
Simple Fee Structure
A monthly fee taken is out of the account each month or annually depending on the account you choose. Also you will need to pay for cash withdrawals this cost will be highlighted in advance
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Interested in a basic business bank account?
Why not try out our bank account finder? This is a free, no-obligation tool that will help you find the most suitable account for your business.