Business banking for people with bad credit

Finding business banking with adverse credit – our guide and tips.

Opening a business bank account with poor credit

Finding suitable banking when you have adverse or poor credit can be a headache, with many high street banks and building societies declining new account applications. Opening business banking can seem daunting and new business owners worry about the costs and process involved. On this page we’ll look at what to expect when opening an account, and how to prepare to ensure your application is accepted first time around.

Finding a business bank account with adverse credit rating

Both personal and business credit ratings can affect banking decisions for a minimum of six years and sometimes even the lifetime of the company.  Banks and building societies assess this in different ways depending on when the adverse credit occurred, how much it was for and the reason behind it.


When applying for a business bank account, loan or card processing it’s important that you have these details to hand and to disclose them before application. Some providers will accept adverse credit to varying levels so it’s vital to establish you fit criteria prior to submitting the application.

No credit check business bank accounts

Not all providers do a hard credit check when applying for business banking. If you or your business has poor credit or minor adverse history, such as CCJ’s, debt management plan or IVA’s and late or missed payments it might be worth using a provider who won’t require proof of repayments or search your credit history.


These banks and building societies will often carry out a soft credit check (which won’t appear on credit history) and business checks, such as ensuring the business is registered on Companies House.

Applying for a business account with poor credit

When opening a business bank account with poor or adverse credit, preparation is key. Planning and packaging your case correctly before submitting an application will increase the chances of the account being accepted. Here’s what we suggest you have to hand;

  • ID
  • Proof of address
  • Details of your adverse credit including timings and amounts outstanding
  • If you’ve been declined elsewhere, and the reason

If you are planning on submitting an application online, we suggest you speak to an advisor before completing the forms. With smaller banks especially, this will allow underwriting to have a heads up on your case and potentially pre-approve it before receiving documentation.

Business bank account for bankruptcy (both personal and company)

Understandably, there are limited accounts available to directors with a registered bankruptcy or ongoing debt management plan. However, if the bankruptcy is over six years old and is personal debt rather than a business made bankrupt there are options available to both limited companies and sole traders. To discuss this in further detail speak to our experts today.


Terminated business banking

If you’ve had your account terminated following recent adverse credit, there are alternative business banking options available. Although high street banks may not be able to offer suitable solutions, smaller and online providers can.

How Merchant Advice Service can help

Merchant Advice Service have partners who can assist with business bank applications despite adverse credit. We work closely together to ensure your application is accepted quickly, meaning your new account could be live in as little as 24 hours. To find out more, speak to our experts today.


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