There are several steps you will need to go through to open a new business bank account.
Providing information
Depending on the type of business you have, you’ll need to prepare certain documents before your account can be approved.
These will include
- a driving licence, passport or other acceptable form of ID
- details of your other financial arrangements, like mortgages, credit cards and store cards
- the trading address of your business
- your Companies House registration number, if you have one
- details about your business, including address, main business activity, number of employees, tax information and turnover
- details for your directors or partners, including their names, dates of birth, addresses and National Insurance numbers
- your business registration details, including your date of incorporation if your business is a limited company
Credit and fraud checks
Various credit and fraud checks will be carried out on your application, you, and your business partners.
These checks take into account your personal and business credit, as well as any factors that may impact your ability to obtain short-term credit.
Review of application
Your application will then be reviewed. If your application is approved, your bank will contact you by email or text, and most likely follow with a welcome letter.
They may need to contact you for additional information or clarification on the information you have provided.
Setting up the account
Processing of business account applications can take from seven working days up to four weeks, depending on your business structure, or if your bank is receiving more applications than usual.
Your business account details and debit card will be sent out once the account is open.
Starting to use the account
To begin using your account, you could transfer some money into the account, so you have a balance to work with. You can then start setting up direct debits and update payment details on things like invoices.
You could also create some separate accounts to manage your money more effectively. For example, some money could be put aside for unexpected expenses.
It would also be useful to set up your online banking and mobile banking at this point.
Setting up online and mobile banking
To set up online and mobile banking, you’ll need to register for online access with your bank, which you can usually request online.
For mobile banking, you should be able to download your bank’s app from the app store on your mobile phone.
The registration process varies, depending on which bank you’re with, but it usually involves completing several security steps, including
- a set-up code sent to your mobile
- a password and registration number posted to you
- a card reader or security device sent for you to use
Once registered, you will be able to log in whenever you need to.
If you’re not confident setting up online or mobile banking yourself, your bank should be able to help you. Many banks offer free guidance over the phone or online.
