Compare business accounts

A business account is a current account designed for business owners to organise their company finances in a secure place. Your bank or building society will usually provide features such as online banking, cashback, an overdraft and additional support from a business manager.

Having a business account can make organising your finances a lot easier in the long term as you can track your cashflow without getting confused with personal bills or payments in the same account.

Keeping personal and business accounts separate brings greater clarity when it comes to paying tax and reclaiming VAT at the end of the tax year too.

Whether you’re a small business, start-up, sole trader or limited company, business accounts usually come with a monthly fee. However, if you’re opening a new business account or thinking of switching, you can usually find an introductory offer that gives you a certain period where you don’t have to pay a monthly fee.

At the end of this period you can choose to start paying the monthly fee as normal, or switch to a new business account to take advantage of another introductory offer.

Each bank or building society has different stipulations about what you need to open a business account, but generally you will require the following:

• Proof of address
• Proof of ID
• Full business address
• Personal contact details
• Companies House registration number (CRN)
• Estimated turnover (or sensible projection as a new business)

If there are multiple directors or partners who will be responsible for using the business account, each will have to provide their own personal details and proofs to fulfil the application. Chances are the bank or building society will want to investigate your financial history to make sure you are a trustworthy borrower.

Yes, you can. In the same way you can have multiple current accounts, there’s nothing stopping you from having multiple business accounts too. However, you will still have to apply using the usual method, which could mean being credit checked.

Most banks and building societies allow you to set up a business account online, though you will still need to provide proofs of address, ID and a signature.

Depending on the account you’ve chosen, you might have to attend a meeting in branch to present proofs of address and ID in person, though most of the application can still be completed online.

There are several different fees applicable for owning and running a business account. However, you will often find a bank or building society will provide an introductory period with no fees, to make it easier for fledgling business owners to afford when they’re just starting out.

Outside of any promotional periods, the following fees will apply to your business account on a monthly basis:

• Account maintenance fee
• Branch or ATM cash withdrawal fee
• Bill payment fee (internet, telephone or in-branch)
• Standing order fee
• Direct Debit fee
• BACS payment fee
• Cheques paid in fee

Like any personal current account, you are able to switch business accounts as and when required. You can do this through the Current Account Switching Service, as long as your company has fewer than 50 employees and your annual turnover does not exceed £6.5 million.

As long as you don’t owe your existing bank any money or fees linked to the current account you’ve been using, you should be fine to switch. If you have a joint business account, you will have to get the permission of any other named owners of the account prior to making the switch.

With the Current Account Switching Service you can complete this within 7 working days. (as long as you fulfil their requirements). However, you must have permission from all directors or owners linked to the account before you make the switch.

Most banks and building societies will perform a credit check to make sure you haven’t got anything in your financial history that would stop them from accepting your application. Your credit score might have an effect on your likelihood of acceptance, so it’s worth double checking what your credit rating is, and if it’s low, take steps to improve it.

You will need to provide personal information to help identify you as the business owner, along with business details such as an address and tax information. The following details may be requested from the business account provider:

• Your name and valid ID
• Details of any other owners or directors
• Registered business address
• Contact information
• Company registration number
• Date you began trading
• Tax identification

If you have a bad credit score, there are a few business accounts with limited features that will allow you to apply without a credit check. This means that you have the choice of taking out a no credit check business account, or take steps to improve your credit score until you have access to a standard business account.

No. You will often find that no credit check business accounts will charge a monthly fee and won’t provide an introductory offer like a standard business account would.