Having a business account is important so that you can keep your business finance separate from your personal finance. You can only open a bank account when you have set-up a limited company.
There are two ways to open a business account… the second option takes a few minutes and no credit checks required:
1. High Street Banks (Natwest, Barclays etc)
You can set up a business account with a high street bank such as Barclays, NatWest, Santander, RBS, etc.
This is the best method, but it can take a long time (on average 5 working days) and they will do credit checks.
It’s usually easier if you do it with your personal bank as they already know you. Just ask them that you want to open a business account and they will guide you through the process, and open a business account under your existing account.
2. Fast Online Bank – No Credit Checks
The fastest and easiest way to open an online business bank account. This is like a normal current bank account, but you won’t have a bank on the high street that you can visit.
You can deposit money into the bank account by visiting the post office and withdraw the same way. You will be given a debit card (Master Debit Card) and also have access to online banking facilities. Consider this as your virtual bank account.
The main benefits are:
- There are no credit checks
- 5 mins application process
- Your account is opened instantly
- You get your sort code and account number instantly