Searching for a business bank account following a decline? We’ve got you covered.
Have you recently faced a setback in securing a business banking account? It’s essential to recognise that each bank or building society has distinct criteria for business account applications. If your application has been declined, various factors may be at play. Let’s delve into the reasons and explore alternatives to help you navigate this situation.
Reasons for Declined Applications
Understanding why your application was rejected is the first step in finding a suitable alternative. Banks may decline applications for the following reasons:
- Industry type considered high-risk
- Personal or business adverse credit
- Registered location of the company
- Directors based overseas
Each financial institution has its unique criteria, so a rejection from one doesn’t mean all doors are closed.
Finding Alternatives
Before seeking alternatives, pinpoint the reason for the rejection. For instance, if a poor credit rating led to the decline, consider alternative banks that conduct only soft credit searches during the application process.
Exploring Alternative Costs
Concerned about increased costs with alternative business banking? While it’s a common worry, selecting a provider carefully can ensure reasonable expenses. Expect a minimum setup fee covering administration costs, monthly charges, and transaction-based costs (e.g., direct debits or standing orders).
What to Do After a Rejection
A business bank account is indispensable, and facing a rejection can be daunting. Before exploring alternatives, prepare your future applications meticulously. Gather essential documents, including ID, company registration details, director information, and specifics of any adverse credit history.
Help After Rejection:
Merchant Advice Service collaborates with partner banks to offer accounts to those declined elsewhere. Our partners can expedite the process, ensuring alternative accounts are operational within days. Consult our experts to learn more about how we can assist you.
Conclusion
Navigating business banking declines involves understanding the specific reasons. There are high-risk industry concerns, overseas directors, or registered company location. Preparation is key—check your credit report and ensure application forms are thorough.
For those facing a decline, alternative banking options exist. These may include providers conducting soft credit checks, impacting your credit score less. Expect some costs, like a monthly fee, but choose wisely to avoid high expenses. Remember, using alternative services doesn’t limit future opportunities with mainstream banks.
Services like Merchant Advice Service can offer guidance and expedited account setup. Embracing these strategies can help in securing a reliable financial foundation for your limited company.
