Frequently Asked Questions

If you are running a business, keeping any business spending separate from personal spending is a requirement. By law, businesses must have a business account keeping personal transactions separate. This is not a requirement for sole traders; however, some banks may not allow a personal current account to be used for business purposes. Having a business bank account can also help you if you need to apply for a business loan in future.

This depends on the account provider and if you have all the relevant documentation. A new business bank account can be opened in as little as one hour or several days. It will take around a week after the account has been opened for debit cards, credit cards, etc., to be delivered.

You can use the Current Account Switch Service to switch business bank accounts in the same way you would use it to switch personal bank accounts from one provider to another. This is a free service that enables you to move all direct debits and recurring payments, as well as balances, to your new account and close down your old business bank account. However, if you are over-drawn, the new bank may not allow you to transfer an overdrawn balance to them, and you could be required to pay off any overdraft in full before you can switch banks. Check with your chosen bank to make sure you understand their policies and procedures.

Most business bank account providers will charge a monthly fee. However, many also offer introductory periods where no monthly fee is charged or free bank accounts with some limits, which you can upgrade for additional benefits and facilities. So it is always worth checking with your chosen bank what their new business account offers to ensure that you make the best decision for you and your business.

This will depend entirely on your individual circumstances, your business and your chosen bank’s policies. It is a good idea to talk to your existing bank where you hold your personal account first, to find out what might be possible, given your unique circumstances. It is important to be open and honest about any CCJs or bankruptcies. Credit history will definitely come to light during a credit check of you, your company and the directors or owners of the company.