No Credit Check Business Current Accounts

No credit check business current accounts are designed for certain types of businesses. These can be companies looking to improve an imperfect credit score to smaller organisations which intend on using a simple product to manage their cashflow. In addition, sole traders and start-ups can benefit from these accounts too if they don’t have a credit history.

Typically, these current accounts differ from other products on the market because they usually perform soft credit checks on application rather than hard searches. Although this doesn’t guarantee a current account, it can make the application easier.

Business current accounts for those with bad credit will likely come with the usual features other current accounts enjoy. These could include, but aren’t limited to a card for business spending, online banking facilities, and the ability to send invoices to your customers.

What these accounts will likely not include are overdraft facilities and the ability to earn interest on your cash. For this instead, consider opening an easy access account for your business savings.

All accounts listed on the chart above are regulated by the Financial Conduct Authority (FCA).

However, unlike other mainstream options, most of these accounts won’t enjoy protection from the Financial Services Compensation Scheme (FSCS). The FSCS protects up to £85,000 of your money if your financial institution were to collapse, with more information on this available in our guide.

The reason why some of these accounts don’t benefit from the scheme is because they are classed as e-money institutions rather than a full bank.

Like your personal credit score, there are a couple of steps you can take to improve your business’s credit score.

Firstly, look at your business’s books and determine if there are any unpaid invoices or forms of credit which is negatively impacting your score. If there are, then make a plan to address this debt by paying it off as soon as possible.

If you don’t have any outstanding debt, consider taking out a business credit card. Once this card has been approved use it responsibly for business purchases and make sure to pay your debt back in full each month.

Registering your company with the HMRC to make it official can also improve your score.