Fast opening Business Bank Accounts

Fast opening business bank accounts

Waiting weeks or even months to open a business bank account is a real problem when you’re trying to get your business finances in order. If you need to start taking payments, setting up direct debits or separating your business finances quickly, the speed at which an account can be opened genuinely matters.

We have looked at business bank accounts that can be opened and operational within three days for most applicants. But there’s important context behind that figure, and understanding it will help you set the right expectations.

Why fast opening accounts open faster

In almost every case, the ability to open a business bank account quickly is tied to the type of licence the provider holds. Fast opening accounts are typically offered by electronic money institutions (EMIs), also known as e-money institutions, rather than banks.

An electronic money institution is authorised by the Financial Conduct Authority (FCA) to issue electronic money and provide payment services. They’re legitimate, regulated providers, but they operate under a different regulatory framework than a fully authorised bank.

Because EMIs don’t directly offer lending products, they don’t need to assess your creditworthiness when you apply. The checks they carry out are for identity verification and anti money laundering (AML) purposes, not to assess whether you’re a lending risk. That’s what makes the process faster: there’s less to assess.

What fast opening accounts do and don’t offer

Fast opening business accounts are predominately brought to you by the newer, more innovative fintech brands operating under EMI regulations. They are well suited to day-to-day transactional banking, with debit cards and apps as expected. However, rather than one large breadth of products, each one often excels in specialised services for certain business sectors or business models via advanced tech       

What you won’t find directly via the same type of provider are credit products such as loans, credit cards and overdrafts. If these products are offered then it’s likely via partnership, not directly.

As fast opening is dominated by EMI providers, then you need to be aware of the difference in deposit protection. EMI’s offer safeguarding measures, a process that ring-fences deposits  away from operation costs to protect it if the provider company fails. Fully authorised banks fall under FSCS protection, covering eligible deposits up to £120,000 per institution, per customer. 

There are exceptions: 

We’ve provided you with the main reason why some business accounts can open very quickly, and why some can’t. This represents the basis of fast opening for  a majority of providers, but not every single one.

There are exceptions where fully authorised banks can offer fast opening (3 days and under) for around 80% of new accounts.

An additional exception applies to FSCS Protection. Some EMI’s offering fast opening offer FSCS Protection because their accounts are actually provided via a fully authorised bank.

Application timescales vs. account opening

The three day figure refers to the time from approval to your account being open and usable, not the total time from application to approval. In practice, applications for fast opening accounts are typically processed quickly, too, but it’s worth being clear on the distinction.

Factors that can slow down an application include incomplete documentation, additional verification requirements for certain business types, or flags raised during identity or AML checks. Most straightforward applications, particularly sole traders and simple limited companies, move through quickly.

Is fast opening the right priority for you?

Speed matters most when you’re starting out or in a time sensitive situation. Understand the differences between providers to be clear what you will and won’t obtain by utilising the fast opening service. 

If fast opening is important, the accounts in this category are worth comparing on their ongoing features and costs, too. Getting set up quickly is valuable if the account works for you and your business needs.