In our experience opening a Business bank account is rarely simple or easy. What we often assume is going to be a simple and intuitive process can often be anything but. There is no one set application method in place, each is different. Each bank has its own procedures to follow and business accounts can carry a few more quirks than personal accounts.

If you pre-prepare you shouldn’t run into any major challenges, but it pays to know how much evidence you’ll need and what know hoops you will need to jump through. One tip here is to have all your evidence in digital form so that it can be uploaded or emailed.

We have summarised the essential stages to getting a new Business bank account

below.

The Eight stages to opening a new Business bank account

1. Choose your bank - take a look at all the options on the market and find the best fit for your needs.  Account maintenance cost and processing costs are likely to be important. And whether the account comes with a Relationship Manager so you can discuss things like overdrafts. You can use an on-line search to achieve your initial research, starting by using one of the comparison sites is a good launch point. https://www.moneysavingexpert.com/banking/business-bank-account/
2. Start your application - online, over the phone or in person at your local branch, you’ll need to share some essential information to begin with. This usually includes your trading name, incorporation status and director and shareholder details.
3. The chosen Bank completes initial checks - the bank will verify your company’s identity and the identities of its shareholders and directors.
4. More detailed checks - banks are mandated to perform “Know Your Customer” and Anti-Money Laundering checks. You can expect further ID and background checks such as on line or physical passport checks.
5. Understanding the business - you’ll be asked to share some headline details about the nature and size of your business, things like your actual or expected turnover plus the source of any ongoing investment funds. They will also want to know the approximate size of your initial account deposit.
6. Setting permissions - the bank will set up access permissions and credentials according to your needs. This can include measures like two-person payment authorisation or read-only rights for members of your finance team.
7. Issuing credentials – at this stage you can start using your account. Your access credentials will be created (account number, online banking login, etc.) and you’ll be in a position to fund your account.
8. Accounting software - the only thing left to do is integrate your bank account with your chosen accounting software and set up the bank feed for a seamless reconciliation process.

The big problem with opening a new business account is that there isn’t a standardised process across the industry. The checks at Stage 4 normally follow set guidelines, but there are no such standards for financial evidence or identity checks. The details you need to give will vary from bank to bank. Some banks might ask for your last financial year’s turnover, another might ask for three years of audited accounts, an on-line bank might not want any of these or just want forecasts. Identity checks will most likely include showing your passport but you may also be required to supply utility bills addressed to your company office. It’s ultimately a question of how the chosen bank manages risk and what security measures they have in place - there’s not a right or a wrong approach. The answer is to persevere and find a bank that you can satisfy and that satisfies you!

‍