How long does it take to get a business credit card?

Depending on the provider, it could take a few days or a couple of weeks for the business credit card to arrive in the post. Once you submit your application it will need to be reviewed by the card issuer but that is normally approved quickly.

Is your credit record checked for a business credit card?

Credit card providers usually check your business's finances and credit record when you apply for a business credit card. If your business doesn't have much credit history, your personal credit history may be checked. A business credit score reflects your company’s ability to manage debt and repay loans, and is based on factors like payment history and outstanding debt.

Does using a business credit card affect my personal credit record?

Using a business credit card could affect your personal credit card, particularly if you're the main account holder. It's best to use a business credit card sensibly, as you would a personal credit card, If you're worried about repayments you should speak to the card provider as soon as possible.

Can I get a business credit card with rewards?

Yes, business credit cards with rewards are available. These cards often offer cashback, allowing you to earn a percentage of what you spend back. Other rewards may include air miles, travel points, or shopping vouchers, depending on the card provider. Choose a business credit card with rewards that aligns with your business's spending habits to maximise the benefits.

Can several employees have their own card?

Yes, you can get multiple corporate credit cards under one account, which allows selected employees to have their own cards while the business receives a single bill. Many providers also offer spending controls, so you can set limits and monitor expenses for each card.

Do I need a business current account to apply?

No, a business current account is not a requirement to apply for a business credit card. However, having one can simplify managing your finances, making it easier to pay your bills and keep business transactions separate from personal ones.

Can I get a business credit card as a startup?

Yes, startups can apply for a business credit card, and it can be a useful tool for managing cash flow during the early stages. However, since your business is new, you may be asked to provide additional information to prove your ability to meet repayment requirements. This could include a personal credit check, company financial statements, and details of any assets, which will help the provider determine your credit limit.

Can I check my eligibility before applying for a business credit card?

Many providers let you check your eligibility online before applying. This typically involves a soft credit check, which won’t affect your credit score, and will give you an idea of your chances of approval prior to any application.

Are business credit cards interest-free?

Business credit cards aren’t usually interest-free. However, many providers will offer an interest-free period on purchases if you pay off the balance in full each month. If you carry a balance, interest will apply, so it’s important to check the terms.

Can I get a business current account with bad credit?

Yes, it’s possible to get a business current account even if you have bad credit, though it may be more challenging. Some banks and financial institutions offer business accounts specifically designed for people with poor credit histories. These will sometimes come with fewer features, but can still help you manage your business finances effectively. To improve your chances of being accepted for an account, you can take steps to enhance your credit history, such as paying bills on time, reducing outstanding debt, and regularly checking your credit report for errors.

How long does it take to open a business bank account?

Opening a business bank account typically takes between one and four weeks, though the process can be faster depending on the bank and your business type. Some banks even offer same-day account opening. Factors that can affect the timeline include your business structure (sole traders usually take less time), your relationship with the bank, and the application method. Some banks offer faster services, and non-residents or high-risk businesses may experience longer processing times. Once your application is submitted, the bank will conduct background checks and may contact you for additional information.

Can I use a personal current account for my business transactions?

While it’s technically possible to use a personal current account for business transactions, it’s generally not recommended. Keeping personal and business finances separate helps you stay organised, track expenses more easily, and simplify tax reporting. If you run a limited company, using a business current account is a legal requirement because your company is considered a separate legal entity. Sole traders aren’t legally required to have a business account, but opening one can provide tailored features, such as accounting tools.

What fees can I expect with a business current account?

The fees for a business current account can vary depending on the bank and the account type. Common charges to look out for include: Monthly maintenance fees: A fixed charge for maintaining your account. Transaction fees: Costs for deposits, withdrawals, and payments. Overdraft charges: Fees for accessing overdraft facilities. International transfer fees: Charges for sending or receiving money abroad. Debit card usage fees: Costs for using your business debit card, especially abroad. Some business accounts may offer free banking for an introductory period, so it’s essential to carefully review the fee structure to find an account that matches your business needs and budget.

Are business bank accounts protected by FSCS?

Yes, business bank accounts are protected by the FSCS up to £85,000, provided the bank is FCA or PRA-authorised. For small businesses or limited companies, protection applies if the bank fails. Sole traders have combined protection with personal accounts under one £85,000 limit. For more complex claims, eligibility may vary depending on your business type. Check with your bank for specific coverage details.

Can I have multiple business current accounts?

Yes, you can have multiple business current accounts. This can be useful for managing different aspects of your finances, such as separating operational expenses from tax savings, or tracking revenue for different projects. If you run multiple businesses, separate accounts for each can simplify accounting and financial reporting.

Do I need to maintain a minimum account balance?

Whether you need to maintain a minimum balance depends on the specific business current account you choose. Some banks may require a minimum balance to avoid fees or to access certain account features, while others may be more flexible. Review the account’s terms and conditions or ask your provider directly if you're unsure.

Are there any limitations on the number of transactions or cash deposits I can make?

Many business current accounts have limits on free transactions or cash deposits each month. Exceeding these limits may incur fees. Some accounts also cap the maximum cash deposit per day or month. To avoid extra charges, review the account terms and choose one that suits your transaction volume.

What happens if I close my business?

If you close your business, notify your bank and close your business current account. The bank will guide you through the process, which will typically involve settling any outstanding payments or fees. Any remaining funds can be transferred to a personal account or another business account.

Am I guaranteed an overdraft with a business account?

No, getting an overdraft with a business current account isn’t guaranteed. Just like with personal accounts, you’ll need to pass a credit check to be approved, and the overdraft limit offered will depend on both your financial circumstances, and the bank’s assessment of your business. If you need an overdraft, it’s a good idea to speak directly with your account provider to explore available options and understand the terms, including any fees and interest rates that could apply.

Is my business eligible to use the Current Account Switch Service?

Your business may be eligible to use the Current Account Switch Service if it meets the following criteria: Fewer than 50 employees Annual turnover of £6.5 million or less Both your current and new banks are part of the switch guarantee scheme If you're unsure whether your business qualifies, contact your new bank for confirmation and guidance on the switching process.

Can I have a business current account if I'm a sole trader?

Yes, sole traders can open a business current account, just like partnerships and limited companies. Having a dedicated account is smart as it separates personal and business finances, simplifying income tracking, expenses, and tax management. Many banks offer accounts tailored to sole traders with features like accounting integrations, invoicing tools, and business support, helping you manage cash flow and prepare tax returns more easily.

Can I use my business current account for personal transactions?

Generally, it’s not advisable to use your business current account for personal transactions. Keeping business and personal finances separate helps maintain clear records, avoid tax complications, and ensures compliance with accounting standards. Mixing personal and business expenses can lead to confusion and potential legal issues, especially when it comes to taxes and audits. Additionally, it's worth noting that many banks prohibit the use of business accounts for personal purposes.

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How to get a business bank account with bad credit

How to get a business bank account with bad credit

Written by Jessica Bown, Contributing WriterEdited by Lucinda O'Brien, Senior finance editor, 28 March 2025

Fact Checked

A poor credit history might rule out some business bank accounts, but there are accounts for people in this situation.

Bad credit might stop you getting a business loan, but it shouldn’t prevent you getting a business bank account.

Having a good credit rating is a bonus if you want to set up your own business. But not all business bank account providers conduct credit checks on new customers. And there are plenty of ways to improve your credit score if necessary.

Choose the best business bank account for your company with features including no set up fees.

Compare business bank accounts

Can I open a business bank account with bad credit?

Yes, you can get a business bank account even if you have a bad credit rating. However, you may not qualify for all business accounts.

Many banks carry out credit checks on business bank account applicants, so whether they accept or reject you depends on whether you meet the bank’s eligibility criteria. This is generally the case with traditional high street banks.

The good news is that applying for many digital-only accounts, such as Tide or Starling, does not involve a credit check. Some traditional banks also provide business bank accounts designed for those with poor credit histories. However, these accounts are unlikely to offer all the features of a standard business bank account.

How to get a business account with bad credit

To open a business bank account with a UK bank or building society, you must:

Be at least 18 years old
Pay tax in the UK
Be a registered sole trader or director of a UK-based limited company

To set up a business bank account you must also provide certain documents, the exact list of which varies between providers.

Commonly requested documents include:

A valid ID, such as a passport or a UK photocard driving licence
A recent bank statement or utility bill, or another proof of address, such as a mortgage statement
Paperwork that proves your business exists, which could include HMRC correspondence and supplier invoices (dated within the last three months)

If the business has several directors, you must provide ID and address details for all of them. And if you, the company, or any of the other directors have a poor credit history, you may need to provide documents showing when and how you resolved any issues.

Top tip
Digital-only challenger banks can be a wise choice for people with bad credit, as their checks tend to be less stringent than those of traditional high street banks. In some instances, when you start out, you can avoid the need for a business bank account altogether and use your personal account for business. There are some disadvantages to this approach, though.

How is my credit score checked for a business bank account?

If you choose a business bank account with a bank that conducts credit checks, it searches your credit history to check for unpaid bills, late payments and more serious problems, such as bankruptcy or a County Court Judgement (CCJ).

You can avoid this by opting for a business bank account from a digital bank, such as Tide or Starling, which does not run credit checks on applicants. These accounts are generally competitive and convenient to operate. They also offer most of the same services as accounts from traditional banks. Features you can expect include:

Online/in-app banking
Direct Debits and standing orders
ATM withdrawals
Bank transfers
Payments in and out

However, you may find it harder to get an overdraft with a business bank account of this kind.

How can I find out my credit score?

You can check your credit score by:

Contacting one, or all three, of the UK credit reporting agencies – Experian, TransUnion and Equifax – and asking for a copy of your report.
Using an online service, such as ClearScore, to check your credit history.
If you run an existing business, you can check your business credit report by contacting the relevant credit reporting agencies.

How can I improve my credit score?

Often, the quickest and easiest way to improve your credit score is to ensure all the information on your file is accurate and up to date. Being registered under an old address, for example, could have an unnecessary negative impact on your score.

If you’re not on the electoral roll, registering to vote can also give your score an immediate boost. Other ways to increase your credit score and improve your chances of qualifying for other financial tools such as business credit cards and business loans include:

Making bill payments on time

You can erase black marks on your credit card over time by making sure you always pay everything, from your mortgage to your mobile phone bill, by the due date.

Using a credit card responsibly

One way to build up your credit score is to take out a credit card aimed at people with low credit scores and pay it off in full each month, thus avoiding interest charges on your purchases. This is an ideal tactic for those with little to no borrowing history.

Paying off existing debts

Reducing your credit card debts, for example, not only saves you money and shows financial institutions you are a sensible borrower, but it also helps to lower your credit utilisation level. This is the percentage of available credit you are using at any one time.

Example
Say you have two credit cards, each with a £2,000 credit limit. If you have a balance of £1,000 on each card, your credit utilisation is 50% – £2,000 out of a possible £4,000. But if you pay off the total balance on one card, your credit utilisation drops to 25%, or £1,000 out of a possible £4,000.