Find the best business current accounts in this review by Compare Banks.
Best Business Current Accounts
Top-rated business current accounts — FAQs
Is it risky to use apps and accounts for business banking online?
It’s important to be aware that some app-based current accounts are provided by e-money institutions. These providers are governed differently than traditional financial institutions like UK licensed banks and won’t be protected by the Financial Services Compensation Scheme.
However, these companies must still segregate customer funds from business funds in a bank account. If the company fails, the money will still be secure. They should provide information about this on their website.
How can I switch my business bank account?
The easiest way is to use the Current Account Switch Service – check whether your new provider uses this service. This guarantees your switch will be completed within seven working days and takes the hassle out of the process as your new provider will look after everything.
Can a company with bad credit open a current account?
Potentially, but you’re likely to have fewer banks to choose from. Some providers won’t require a credit check when you open a business bank account, but you won’t be able to apply for an overdraft facility on the account.
Can you use your company bank account to send money overseas?
Checking the product specifications is the only way to find out whether a business account supports international transactions. There might be extra transaction fees or a higher monthly account cost if you use this service often. If you need to make regular payments overseas, you may find a specialised international money exchange firm offers lower rates.
If you want to send money overseas from your bank account, you’ll need an IBAN.
Should I open a company checking account, or use my personal one?
If you’re a sole trader, you can use your personal account for your business banking needs if your provider permits it. However, there are many benefits to opening a separate business bank account, so it’s still worth considering. If you’re a limited company, you will be required to open a separate business bank account for your business needs.
How does an overdraft on a business bank account work?
If you want an overdraft on your business bank account, you will need to arrange this with your provider. They will decide whether they are happy to give you one, and what your overdraft limit will be. However, bear in mind that interest charges can be very high.
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