Opening a Business Bank Account for Sole Traders

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Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

Business bank accounts for Sole Traders

Welcome to the world of Sole Traders! While it’s not a legal necessity to open a business bank account, the majority of accountants highly recommend it for several compelling reasons. Let’s explore the benefits…

Benefits of a Sole Trader having a separate bank account

Separation of Finances: Keeping personal and business expenses apart streamlines accounting admin, making your financial life a breeze.


Simplified Tax Returns: With a dedicated business account, the line between taxable profits and expenses becomes crystal clear, making tax returns a smoother process.


Professionalism and Trust: When receiving electronic payments, a business bank account adds a touch of professionalism, instilling confidence in your customers.

Choosing the Right Business Banking for Sole Traders

Selecting the best business bank account for your venture involves thoughtful consideration of your unique needs. Here’s a quick guide:


Access Preferences: Consider how you want to manage your account. Do you prefer telephone banking or an app interface? Think about where most of your transactions will occur.


Cash Handling: If cash transactions are a regular part of your business, identify the nearest branch for convenient deposits.


Once you’ve clarified these requirements, comparing business bank accounts becomes straightforward, enabling you to make informed decisions.

Costs and Fees: Navigating Business Banking for Sole Traders

Understanding the cost structure of your chosen business bank account is crucial. Here’s what to keep in mind:


Administration and Service Charges: Expect an administration fee and a monthly account service charge during setup.

Transaction Costs: All transactions come with individual fees, so consider your usage patterns. Are you handling daily cash transactions or making international payments?

Instead of merely focusing on upfront costs, delve into the complete pricing structure, emphasising the transactions you’re likely to use most frequently.


Applying for a Business Bank Account as a Sole Trader with Adverse Credit

For Sole Traders, credit history is intertwined with personal and business profiles, making it challenging to secure business banking with poor credit. If you’re in this situation:

Explore Accounts Without Credit Checks: Some accounts bypass credit checks; however, have a conversation with the bank to ensure you meet their criteria.

Discuss Your Adverse Credit: Be prepared to discuss when the adverse credit occurred, the outstanding amount, repayment status, and any reasons behind the adverse event.

Speak to our experts on how to apply for business bank accounts for Sole Traders.



Facing Business Banking Decline? Merchant Advice Service Can Assist!

If you’ve faced a business banking decline, don’t worry. Our partner banks offer no credit check accounts for Sole Traders, with swift approvals within hours.

Apply Today and Let Us Help You


Your Sole Trader Business Bank Account Questions Anwered
Is it mandatory for Sole Traders to have a business bank account?
While not mandatory, it is highly recommended for smoother financial management.
What factors should I consider when choosing a business bank account?
Consider access preferences, cash handling needs, and transaction costs based on your business requirements.
Are there alternatives for Sole Traders with adverse credit?
Yes, accounts without credit checks are available. Have a conversation with the bank to ensure eligibility.
How quickly can I get approval for a no credit check account?
Approval can often be obtained within a matter of hours.
Can I discuss my adverse credit history with the bank?
Yes, be prepared to discuss when the adverse credit occurred, outstanding amount, repayment status, and reasons behind the adverse event.
What are the key benefits of separating personal and business expenses?
Separation streamlines accounting and makes tax returns easier, instilling professionalism in financial transactions.
How do I choose between telephone banking and an app interface?
Consider your personal preferences and where most of your transactions will take place.
What should I focus on when comparing business bank accounts?
Look beyond upfront costs and analyse the complete pricing structure, emphasising transactions you’re likely to use frequently.

How MAS Can Help

In this comprehensive guide to opening a business bank account for Sole Traders, we’ve highlighted the importance of this practice, offering insights into the benefits of separating personal and business finances. The guide provides practical advice on selecting the right business bank account, considering access preferences and transaction needs. Emphasising the significance of understanding costs and fees, it encourages a holistic approach to pricing structures. For Sole Traders facing adverse credit, the guide offers solutions with accounts that bypass credit checks, advising on effective communication with banks. Importantly, for those who have been declined for business banking, Merchant Advice Service (MAS) steps in as a valuable resource. MAS, through its partnering banks, provides assistance by offering an alternative, no credit check accounts for Sole Traders, ensuring swift approvals within hours. This user-focused guide, coupled with MAS support, aims to empower Sole Traders in navigating the complexities of business banking. Apply today and let MAS guide you towards financial success.


Opening a separate bank account for Sole Traders, although not legally required, is advised to streamline financial management and tax filing. This article elucidates the selection process, covering access preferences and cash handling, while also addressing the implications of costs and fees. For those with adverse credit, it proposes solutions like accounts without credit checks and open communication with banks. 


The Merchant Advice Service offers additional support, facilitating no credit check accounts with prompt approvals. Ultimately, choosing the right business banking services, which may include features such as online banking, debit cards, and accounting software compatibility, can lead to enhanced business income management and customer service experiences. It’s essential to review terms and conditions carefully and consider monthly account fees when selecting a high street bank or other business current accounts. Opening a business account distinct from a personal bank account or a limited company can greatly contribute to the financial success of a Sole Trader.

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Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

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