Advertiser Disclosure
knowyourbusiness.co.uk is an independent comparison and information service that aims to provide you with the tools you need to make better decisions and our website is a free service to our users.
Whilst we are independent, we receive compensation from our partners for placement of their products or services on our website. We may also receive compensation if you click on certain links posted on our site. Partner arrangements may affect the order, position or placement of product information, but it doesn’t influence our assessment of those products.
knowyourbusiness.co.uk brings you this service without advice or recommendation. Choose products based on your businesses individual requirements. Whilst we aim to bring you a broad range of products, which we continually add more to, other options will be available that are not included on our website.
We regularly check our website to ensure you are viewing up-to-date product information. Whilst we make every effort to ensure that our information is accurate, it is not guaranteed. Always check product details with the brand or service that you’re interested in before making a decision.
Promoted
Tide Savings Business Bank Account & Savings Account
- Get £200 Cashback with a Tide business bank account and savings account.
- New customers, boost your business savings with up to 4.50% AER variable
- Interest is paid monthly & no limits or fees on withdrawals
- FSCS Protected for eligible deposits up to £120,000
**To be eligible for the £200 Cashback offer, open both a Tide Instant Saver and Tide Business Bank Account. Ts&Cs Apply. New customers receive up to 4.50% AER free for 6 months – Interest rates are tiered, with the top rate for balances between £1M and £10M. For full offer T&Cs visit tide.co/savings. FSCS-Protected Bank Account by ClearBank.
Get £175 when you open or switch to a Barclays Business Account***
Barclays Start-up Business Bank Account
Barclays Start-up Business Bank Account
-
Monthly Fee:Free for 12 months, then £8.50
-
Bank Transfers:Some charges apply
-
Overdraft:Yes
-
Access:App, Online & Branch
Great For:
- No monthly account fee for your first 12 months*
- Access to discounted services via key partners to help you set up and run your business effectively, worth over £5,000**
To Consider:
- After 12 months, the monthly account fee is £8.50 per month.
- **T&Cs apply per partner service, see partner website for details.
Great For:
- No monthly account fee for your first 12 months*
- Access to discounted services via key partners to help you set up and run your business effectively, worth over £5,000**
To Consider:
- After 12 months, the monthly account fee is £8.50 per month.
- **T&Cs apply per partner service, see partner website for details.
Features:
- *Free digital banking and no monthly account fee for the first 12 months. You won’t have to pay a monthly account fee for 12 months if you don’t already have a Barclays Business Account with us. After 12 months, you’ll pay £8.50 per month.
- Free digital banking refers to simple electronic payments as defined in your business account tariff. Fees and charges will apply in line with the business account tariff, which could change.
Criteria:
- To open a new business account with Barclays, you’ll need to have a right to live in the UK permanently and provide 12 months’ UK address history. Subject to terms, conditions and eligibility. 18+.
- Overdrafts are subject to application, financial circumstances and borrowing history.
- ***Set up two Direct Debits and spend a minimum of £200 on your debit card for three consecutive months. New business customers only, apply or start your switch by 9 January 2026. UK businesses and 18+ only. T&Cs apply.
Free accounting software available to business account holders. T&Cs Apply**
Lloyds Business Account
Lloyds Business Account-
Monthly Fee:Free For 12 months, then £8.50
-
Bank Transfers:100 electronic payments out free per month***
-
Overdraft:Yes
-
Access:App, Online & Branch
Great For:
- Full access; online, via the app, phone, or at a branch.
- No monthly fee for 12 months if its your first Lloyds Business Account.
To Consider:
- £8.50 monthly fee after 12 months. Some transaction fees still apply.
- You must have a turnover of less than £25m.
Great For:
- Full access; online, via the app, phone, or at a branch.
- No monthly fee for 12 months if its your first Lloyds Business Account.
To Consider:
- £8.50 monthly fee after 12 months. Some transaction fees still apply.
- You must have a turnover of less than £25m.
Features:
- Digital banking with no account fee for 12 months*
- Free accounting software available to business account holders. T&Cs Apply**
- Bank in whatever way suits your business – online, with our mobile app, over the phone or in branch
- Support from our UK-based relationship team
Criteria:
- To qualify for this account you need to be a sole trader, partner or company director
- You must have a turnover of less than £25m
- Must be 18 years old or over
- Must not already have a Lloyds Bank business account for this business
- Overdraft: Debit interest is charged monthly and monthly or annual fees will apply depending on your credit limit. Where you exceed your Overdraft limit, unauthorised interest and charges will apply
- All lending is subject to status. Security may be required. A guarantee may be required for Limited Companies and Limited Liability Partnerships
*After 12 months, there’s a monthly fee of £8.50. Some fees and transaction charges will apply as soon as the account is open. This offer only applies to the business’s first current account **You must be registered for Online for Business or Commercial Banking Online. UK based businesses only ***100 electronic payments out free per month, 20p thereafter
Virgin Money Business Current Account-
Monthly Fee:£6.50
-
Bank Transfers:Free
-
Overdraft:Yes
-
Access:App, Online & Branch
Great For:
- 0.35% cashback (capped at £500 per debit card per year)
- Mastercard discounts available at selected merchants
To Consider:
- For businesses with less than £6.5m annual turnover
- Virgin Money offers 24/7 self-service but not 24/7 customer support
Great For:
- 0.35% cashback (capped at £500 per debit card per year)
- Mastercard discounts available at selected merchants
To Consider:
- For businesses with less than £6.5m annual turnover
- Virgin Money offers 24/7 self-service but not 24/7 customer support
Features:
- Debit Card Cashback – automatically earn up to £500 per calendar year when using your Debit Card for purchases. Some exclusions apply
- If you’re a new business or just new to Virgin Money, you could qualify for 25 months free day-to-day banking when you open or switch to this business current account
- Digital Money Management Tools – helping you manage cash flow, budgets and invoices
Criteria:
- Available for eligible businesses with up to £6.5m annual turnover
- Must be based and operated in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
- All owners, directors, senior managers and account signatories must be over 18 years old
- For limited companies, please allow up to 72 hours from registering your business with Companies House, before starting an application
25 months’ fee free day-to-day banking
Get £200 Cashback with a Tide business bank account and savings account. Earn up to 4.50%**
Tide Savings Business Bank Account & Savings Account
Tide Savings Business Bank Account & Savings Account-
Monthly Fee:Free
-
Bank Transfers:Free for one year*
-
Overdraft:No
-
Access:App & Online
Great For:
- Apply online in minutes with no credit checks or paperwork needed
- This account comes with no monthly maintenance fees
To Consider:
- 20p per bank transfer after the first year
- Tide is a digital-only service. There are no physical branches for in-person banking or face-to-face support
Great For:
- Apply online in minutes with no credit checks or paperwork needed
- This account comes with no monthly maintenance fees
To Consider:
- 20p per bank transfer after the first year
- Tide is a digital-only service. There are no physical branches for in-person banking or face-to-face support
Features:
- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- Automated 30-day cash flow forecasts
Criteria:
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
**To be eligible for the £200 Cashback offer, open both a Tide Instant Saver and Tide Business Bank Account. Ts&Cs Apply. New customers receive up to 4.50% AER free for 6 months – Interest rates are tiered, with the top rate for balances between £1M and £10M. For full offer T&Cs visit tide.co/savings. FSCS-Protected Bank Account by ClearBank.
£100 welcome bonus when you open a Revolut Business account*
Revolut Basic Business Account
Revolut Basic Business Account-
Monthly Fee:£10
-
Bank Transfers:10 Free per month
-
Overdraft:No
-
Access:App & Online
Great For:
- Multi-currency accounts, physical and virtual cards plus spend management tools
- Compatible with accounting software and create invoices in app
To Consider:
- Only 5 free local transfers and no free international transfers
- An e-money product with no branch access
Great For:
- Multi-currency accounts, physical and virtual cards plus spend management tools
- Compatible with accounting software and create invoices in app
To Consider:
- Only 5 free local transfers and no free international transfers
- An e-money product with no branch access
Features:
- Multi-currency accounts – receive payments and exchange in 25+ currencies
- Control and monitor team spending with multiple debit and virtual cards, manage permissions and levels of access and more
- Various payment facilities including Tap to Pay on iPhone (fees apply)
- International payments – Send and receive money from 150+ countries
Criteria:
- Available for limited companies, PLCs, LLPs, Partnerships & unlimited companies
- Currently available for companies registered in and with a physical presence within the European Economic Area (EEA), Switzerland, UK and US
Revolut is not a fully licensed bank in the UK. Your money is held in a safeguarded account with a regulated bank or high quality liquid assets. Your savings are deposited with partner banks and eligible deposits are protected up to £120k per bank. *Open a Revolut Business account and add money to your account by 31 December 2025 to receive a £100 welcome bonus. Available for new Revolut Business customers in the UK only. T&Cs apply. Additional fees may apply.
One month free trial. T&Cs apply.
Airwallex Explore Business Account
Airwallex Explore Business Account-
Monthly Fee:Free*
-
Bank Transfers:Free
-
Overdraft:No
-
Access:App & Online
Great For:
- Open local currency accounts in 60+ countries
- Make international transfers to 150+ countries at interbank rates
To Consider:
- Deposit £10,000 p/month or hold £10,000 to be free, if not £19 p/month
- An e-money product with no branch access
Great For:
- Open local currency accounts in 60+ countries
- Make international transfers to 150+ countries at interbank rates
To Consider:
- Deposit £10,000 p/month or hold £10,000 to be free, if not £19 p/month
- An e-money product with no branch access
Features:
- Open multiple accounts per entity. Collect and hold in 20+ currencies
- Expense management for cards and reimbursements
- Free local transfers to 120+ countries and domestic transfers. Access to interbank FX rates and batch transfers
- Multi-currency and employee cards with zero international fees
- Includes 5 free employee card users and up to 10 company cards
- Online card and local payment method acceptance globally
- Bank feeds sync with Xero. ApprovalMax, WorkflowMax by BlueRock Integrations
Criteria:
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Your business is registered in the UK. More markets are available with different Airwallex entities. Details can be found on the Airwallex website.
Get your first month of Pro or Team completely free*
Monzo Business Lite
Monzo Business Lite-
Monthly Fee:Free
-
Bank Transfers:Free
-
Overdraft:Yes
-
Access:App & Online
Great For:
- For sole traders and small businesses wanting a free, simple digital current account
- Get instant notifications for all account activity to stay in control of your cash flow
To Consider:
- Online account management only, no phone or branch access.
- Not currently available for charities or partnerships.
Great For:
- For sole traders and small businesses wanting a free, simple digital current account
- Get instant notifications for all account activity to stay in control of your cash flow
To Consider:
- Online account management only, no phone or branch access.
- Not currently available for charities or partnerships.
Features:
- Free, instant UK bank transfers
- 24/7 customer support
- Mobile and web access
- The Monzo banking essentials
Criteria:
- Only sole traders or limited company directors in the UK can apply.
*Your first month of Pro or Team is free, after that Pro is £9/month and Team starts from £25/month. Only sole traders or limited company directors in the UK can apply. Ts&Cs apply.
Business expense and corporate financial management account
Wallester Business Expense Account
Wallester Business Expense Account-
Monthly Fee:Free
-
Bank Transfers:No
-
Overdraft:No
-
Access:App & Online
Great For:
- Streamlining company spending with virtual and physical cards, automation, and a real-time dashboard for complete expense control
- Open accounts and issue cards quickly without visiting a bank
To Consider:
- Wallester is not a business bank account, you don’t get traditional banking features like transfers, overdrafts or loans.
- Wallester is a business expense and corporate financial management account
Great For:
- Streamlining company spending with virtual and physical cards, automation, and a real-time dashboard for complete expense control
- Open accounts and issue cards quickly without visiting a bank
To Consider:
- Wallester is not a business bank account, you don’t get traditional banking features like transfers, overdrafts or loans.
- Wallester is a business expense and corporate financial management account
Features:
- Free package with 300 free virtual cards and an unlimited number of free physical cards
- Free multifunctional dashboard for tracking and managing expenses
- No top-up fee (in EUR), no transaction fees, no usage fee, no issuance fee, and no fee for adding extra users
- Ten currencies, including GBP, EUR, USD and other European currencies (SEK, NOK, CZK, HUF, RON, PLN, DKK)
- App included and API for integrations with any CRM accounting software
Criteria:
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Must have an eligible business bank account
Free package of 300 virtual cards with zero fees or limitations
Apply for an overdraft at the Application Stage
Zempler Bank Business Account
Zempler Bank Business Account-
Monthly Fee:Free
-
Bank Transfers:3 free per month
-
Overdraft:Yes
-
Access:App & Online
Great For:
- There are no credit checks to open an account
- Great bank account for Sole Traders & new Ltd Companies, as no monthly or annual fees on the account
To Consider:
- 0.55% fee to pay in cash at the Post Office (£4 min fee)
- FX transaction fee of 2.99% on non-sterling transactions
Great For:
- There are no credit checks to open an account
- Great bank account for Sole Traders & new Ltd Companies, as no monthly or annual fees on the account
To Consider:
- 0.55% fee to pay in cash at the Post Office (£4 min fee)
- FX transaction fee of 2.99% on non-sterling transactions
Features:
- 24/7 app & online servicing and UK based customer service team
- FSCS protection – up to £120,000
- Deposit cash into any of the UK’s 11,500 Post Offices.
- Invoicing tools that allow you to create and send invoices easily
Criteria:
- Available to UK registered companies or UK-based sole traders
- Application made by UK Director
- UK Director 18+ years old
Equals Money Start Up Business Account-
Monthly Fee:£25*
-
Bank Transfers:Free
-
Overdraft:No
-
Access:App & Online
Great For:
- Simple onboarding with no credit checks, good for businesses without established credit history
- Ability to hold and transact in multiple currencies, useful even for start-ups with international clients or suppliers
To Consider:
- No overdrafts, loans, or credit facilities, which start-ups might eventually need as they grow
- An e-money account with no branch access
Great For:
- Simple onboarding with no credit checks, good for businesses without established credit history
- Ability to hold and transact in multiple currencies, useful even for start-ups with international clients or suppliers
To Consider:
- No overdrafts, loans, or credit facilities, which start-ups might eventually need as they grow
- An e-money account with no branch access
Features:
- Budgeting tools
- Manage multiple currencies
- Make tax preparation easy
Criteria:
- Available to Limited Companies, Sole Traders and Partnerships
- You must be 18+ and a UK resident.
Get up to £200 when you open a business bank account and a savings account*
The Co-operative Bank Business Bank Account
The Co-operative Bank Business Bank Account-
Monthly Fee:Free
-
Bank Transfers:Free
-
Overdraft:Yes
-
Access:App, Online & Branch
Great For:
- Ideal for start ups and growing businesses who bank digitally
- No charges for all automated credits, cash withdrawals and debit card purchases
To Consider:
- Charges apply for cash and cheque transactions
- An overdraft arrangement fee applies and where security is required, additional security fees may apply
Great For:
- Ideal for start ups and growing businesses who bank digitally
- No charges for all automated credits, cash withdrawals and debit card purchases
To Consider:
- Charges apply for cash and cheque transactions
- An overdraft arrangement fee applies and where security is required, additional security fees may apply
Features:
- Free everyday digital business banking. No monthly fee. No charges for all automated credits, cash withdrawals and debit card purchases
- Integrate your accountancy software like Xero, Sage or Quickbooks within your online banking
- Online and in-person banking including mobile, instant secure messaging, UK based contact centre, and in branch. Rated ‘Excellent’ based on over 14,000 reviews on Trustpilot
- Most receive their account details within five days
- Co-operative Bank business customers get free, unlimited access to the Go Get Paid app – the fast, simple, secure way to get paid. Plus access selected Clover payment terminals for £1 a month for the first 12 months (fees apply)
- Join the original ethical bank with a customer-led Ethical Policy, which gives customers a say in how their money is used
Criteria:
- Must be a UK resident with a business address in the UK
- Must be 18 or over
- You or your organisation must be one of the following: a Sole Trader, Partnership, Limited Liability Partnership or Limited Company
*Offer applies to new Co-operative Bank customers. Min. balance and transactional criteria applies for the first 3 months. Subject to status, eligibility and T&Cs apply. Charges apply for cash and cheque transactions and other special services e.g. foreign and CHAPS payments. You can deposit cash in branch and in the Post Office for £1.50 per cheque or £1.50 per £100 of cash deposited. An overdraft arrangement fee applies and where security is required, additional security fees may apply. Application subject to status (including credit checks and an assessment of your financial circumstances), eligibility and T&Cs. Mobile banking is subject to eligibility.
'MoneyAge Awards Bank of the Year 2025' – interest earned on every penny up to 3.50% AER variable*
Cynergy Bank Business Current Account
Cynergy Bank Business Current Account-
Monthly Fee:Free for 12 months, then £5.00
-
Bank Transfers:Free
-
Overdraft:No
-
Access:App & Online
Great For:
- International payments in 7 major currencies, including EUR and USD
- Online application for businesses with up to 10 directors
To Consider:
- 3.50% on balances up to £10k but 0.10% for balances above £10k*
- Fees apply for cash, CHAPS, SWIFT and SEPA transactions
Great For:
- International payments in 7 major currencies, including EUR and USD
- Online application for businesses with up to 10 directors
To Consider:
- 3.50% on balances up to £10k but 0.10% for balances above £10k*
- Fees apply for cash, CHAPS, SWIFT and SEPA transactions
Features:
- 3.50% on balances up to £10k and 0.10% for balances above £10k*
- Make international payments in up to seven major currencies, with option to open EUR or USD accounts.
- Customise workflows for account management and transaction approvals requiring more than one account user to sign-off.
- Bulk payment processing.
- Online application for businesses with up to 10 directors.
Criteria:
- Must be a partnership, limited liability partnership (LLP) or limited company (LTD)
- Must be registered and eligible to pay tax in the UK
- Have a maximum of 10 directors
*0.10% AER* variable paid monthly at 0.10% gross p.a. on all credit balances above £10,000. Fee- free for 12 months for new accounts only and £5 thereafter. Limited time offer. T&Cs apply.
Wide Range of Expense Managements Tools
Anna Money Pay As You Go
Anna Money Pay As You Go-
Monthly Fee:Free
-
Bank Transfers:From 20p
-
Overdraft:No
-
Access:App Only
Great For:
- Obtain a UK business account and sort code in 3 mins with ID
- One free debit card included (£3 per extra card)
To Consider:
- No joint account access
- An e-money product with no branch access
Great For:
- Obtain a UK business account and sort code in 3 mins with ID
- One free debit card included (£3 per extra card)
To Consider:
- No joint account access
- An e-money product with no branch access
Features:
- 1 debit card included (£3 per extra card) – 1% cashback on selected categories
- Personal payment link for accepting payments online (1% commission)
- Instant invoice generator and savings pots facility (fees apply)
- Landlords / property investors get a free 12 month subscription to the National Residential Landlords Association (NRLA)
- FastTrack to Credit – Boost your credit score and get access to credit after 3 months activity
Criteria:
- Must be a Sole Trader, Director of a Limited Company (and listed on Companies House), or a Partner in a Limited Liability Partnership
- Business must be located within the UK and you also need to have a UK residential address
- Not available to charities
ANNA Business comes with invoice generator tools, HMRC recognised Tax calculator and filing. Automate your bookkeeping with ANNA.
Free bookkeeping and HMRC tax filing + Free DOJO Go Card Reader (RRP £179)
Counting Up Business Current Account
Counting Up Business Current Account-
Monthly Fee:£3
-
Bank Transfers:30p
-
Overdraft:No
-
Access:App Only
Great For:
- Perfect for start-ups: Pay a low monthly fee depending on how much your business earns
- Automated taxes calculates what you owe in real time
To Consider:
- The price increases with account usage
- An e-money product with no branch access
Great For:
- Perfect for start-ups: Pay a low monthly fee depending on how much your business earns
- Automated taxes calculates what you owe in real time
To Consider:
- The price increases with account usage
- An e-money product with no branch access
Features:
- Monthly subscription fees that go up and down in line with your business performance
- Rated ‘Excellent’ based on over 2,000 reviews on Trustpilot
- Built-in accounting software with receipt capture and live business insights
Criteria:
- Available to sole traders and limited companies
- You must be 18+ and a UK resident
*Offer available for new Dojo customers only. Your Dojo account must be linked to your Countingup account to qualify for the offer.
The Financial Services Compensation Scheme (FSCS) protects up to £120,000 of eligible deposits per person or company, per firm, which is authorised and regulated by the Financial Conduct Authority (FCA). The limit is the total of all deposits held with one firm. For more information visit www.fscs.org.uk.
Types of Business Bank Account Available
- Freelancer Bank Accounts
- Startup Business Bank Accounts
- Free Business Bank Accounts
- Joint Business Bank Accounts
- Business Bank Accounts With Overdraft
- Online Business Bank Accounts
- Sole Trader Business Accounts
- Multi Director Business Accounts
- No Credit Check Bank Accounts
- Switcher Business Accounts
- Small Business Bank Accounts
- Best Business Bank Accounts
- Bad Credit Business Accounts
- Corporate Business Bank Accounts
- Self Employed Business Accounts
- International Business Accounts
- Multi Currency Business Accounts
How to Compare Business Bank Accounts
Understand Your Requirements
How you do business will affect the type of account you need. How many transactions will you have each month? Do you need to pay in cash? Do you need a local branch?
Check Eligibility
Most providers have a range of business accounts to suit different types of businesses. Check the eligibility of each account to make sure if suited to your business.
Compare The Latest Deals
There are numerous offers and deals to attract new customers which can be compared with our handy tool above. Always consider the cost of the account once the free period ends.
Why Your Small Business Needs a Dedicated Account
When you launch a small business, one of the first and important financial steps is to open a dedicated business bank account. While it might seem easier to use your personal account, especially if you’re a sole trader, doing so can create multiple unnecessary challenges. For limited companies, having a separate bank account is a legal requirement because the business is a separate legal entity from its owners.
Beyond any legal necessity, a dedicated account is the foundation of good financial management for any small business. It creates a clear separation between your business finances and your personal spending, which is vital for accurate bookkeeping, managing cash flow, and filing tax returns correctly. It also presents a more professional image to clients, suppliers, and potential investors, signalling that you are a serious and organised enterprise.
Types of Accounts Available
The UK banking market offers a wide range of accounts tailored to small businesses. They generally fall into two main categories:
- Traditional High Street Banks: Providers like Barclays, Lloyds, and HSBC offer the benefits of large established organisations. They can bring services and facilities that suit almost any size business, alongside your personal financial needs. The link between your finances can provide you with better access to higher credit, face to face interactions, account management and support. They are all regulated by the Financial Conduct Authority.
- Challenger Banks: These are online first providers, offering technology driven banking services, like Starling, Monzo, and Tide who have become increasingly popular. They are known for their user-friendly apps, quick setup times and simple, effective add-on solutions such as accounting, invoicing, payment services. They design accounts around specific needs so you can match your banking profile to more cost effective solutions. You might hear terms such as Neobanks, Fintech, Digital to describe his category of providers. Not all are licensed as ‘banks’ and might not offer the same protections as high street banks.
How to Choose the Right Account
Selecting the best account depends entirely on the specific needs of your business. Here are the key factors to compare:
- Fee Structure: Look beyond the monthly account fee. Check the costs for everyday transactions like bank transfers, ATM withdrawals, depositing cash or cheques. A ‘free’ account might become expensive if you have to pay high fees for the services you use the most.
- Cash Handling: If your business regularly accepts cash payments, the ability to deposit it easily and affordably is going to be paramount. Check how this would be handled by a potential new business account provider, as some are just not suitable for this type of banking.
- Accounting Software Integration: To save time on administration, ensure the bank account integrates seamlessly with your accounting software (e.g., Xero, QuickBooks). This automates the process of recording transactions and makes bookkeeping far more efficient.
- Access to Credit: Consider your future needs. Does the bank offer business overdrafts, loans, or credit cards? Establishing a relationship with a bank now could make it easier to access finance later on.
- International Business: If you have customers or suppliers overseas, compare the bank’s fees and exchange rates for sending and receiving international payments. Specialist accounts can offer significant savings in this area.
The Application Process
Opening a small business account is usually straightforward. The documents you need will depend on your business structure but for starters you’ll need.:
- For Sole Traders: You’ll mainly need proof of your personal identity (e.g., passport) and proof of your address (e.g., a recent utility bill).
- For Limited Companies: You will need to provide the above for all directors, plus your Companies House registration number and Certificate of Incorporation.
Many applications, especially with digital banks, can be completed online in a short space of time.
Small Business Bank Account FAQs
1. Is a business bank account a legal requirement for a small business?
It is a legal requirement if your business is structured as a limited company or a limited liability partnership (LLP). For sole traders, it is not legally required, but it is highly recommended for financial management and tax purposes.
2. Can I get a business account if I have bad credit?
It is possible. While most will perform a credit check, there are providers that offer basic business accounts without a hard credit check. These accounts will not offer credit facilities like an overdraft but will provide the essential payment services you need to run your business.
3. What is the main difference between an account for a sole trader and a limited company?
A sole trader account is in your name (e.g., ‘John Smith t/a Smith’s Plumbing’), and you are personally liable for the business’s finances. A limited company account is in the company’s registered name (e.g., ‘Smith’s Plumbing Ltd’), as the company is a separate legal entity.
4. How important is a bank branch for a modern small business?
This depends entirely on your business model. Many small businesses can completely operate their banking via online first providers. . However, there are some types of businesses or industries that need branch services. The importance is entirely bespoke to your business.
5. What happens when a free banking period ends?
When an introductory free banking period ends, the account will be charged each month or annually a fee. Depending on the offer you initially received, this may apply to other chargeable aspects of the account transactions. Make sure you are clear from the start what changes to expect at the end of any offer period, although the provider should also notify you before they begin to take any fees.