Which bank is the easiest to set up a business account?
This isn’t a matter of which bank will take the least time to set up a business account. The physical process of setting up an account shouldn’t be a worry. Modern banks have simplified the application process. Today, opening a business account is as simple as calling them by phone or applying online. It’s only when other factors arise, such as poor credit history, that opening business accounts may become difficult. This isn’t to say it’s impossible, and there are a few ways to make the process of starting your own business much more straightforward.
Finding the best deal
When considering what business account to open these are points to consider:
- Account fees – Will you be charged an annual or monthly fee for holding the account or opening it?
- Availability – Is the account available to your type of business? Say, if you’re a sole trader, charity, or limited company?
- Interest rate – Interest rates have been better, but this doesn’t mean you should overlook your rate.
- Annual turnover accepted – You need an account that has an allowance high enough for your annual turnover.
Online comparison sites are your number one friend when it comes to choosing the best business account deal. However, it’s also important to check what accounts are on offer with your current bank. It’s not unusual for banks to offer existing, loyal customers better deals when opening accounts than new customers. Some banks also offer extras, like NatWest who give you FreeAgent for free.
Poor credit history
If you have a history of poor credit, you can reduce your chances of rejection by finding banks which cater to you. These may include non-traditional business accounts with guaranteed acceptance and no credit checks like:
- Cashplus Business Account – No upfront fees, instant sort code and account number, and low annual fee.
- Acorn Account – Small business account regardless of your credit history.
- CardOneBanking Account – Guaranteed acceptance with an open account within 24 hours.
If you’re hoping to open a traditional business account with a major bank, there are steps you can take to increase your chances:
- Create a solid business plan – Show banks you’re serious about your new business, that you have a good understanding of finance, and that it’s likely to be profitable.
- Check and adjust any issues on your credit report – You can check your credit report for free with companies like Noddle and Clear Score.
- Get on the electoral role – If you sign up early, credit reference agencies will be able to update their records as soon as possible.
- Check with your current bank – Barclays is known to be particularly accommodating if you’re already a current account customer, and a new account can usually be opened within ten days. NatWest and Santander also provide good business account options for those with poor credit history.
Setting up a business account doesn’t need to be difficult. Even if you’re in a situation where your financial history is holding you back, there are always steps you can take to make your business goals become a reality.
If you need a helping hand managing your finances, or if you’re in need some advice on getting your business off the ground, get in touch with Big Hand on 0161 327 2911.