Frequently asked questions
Who can apply for online business bank account?
Anyone who runs a business, a charity, club or pension fund can apply for an online business bank account, but anyone who runs a limited company is legally required to.
Online business bank accounts aren’t a requirement if you’re a sole trader or freelancer, but they are highly recommended. They’re a good way to keep your personal and business finances separate, which will be invaluable come tax time.
How do I open an online business bank account?
In the case of most online bank accounts, the process is as follows:
1. Complete a registration form
You’ll first need to complete an online registration form, where you’ll be asked to provide a few details about your business.
2. Print and collect signatures
Once you’re registered, you’ll need to print a form and get a number of signatures from people in your business.
3. Return the signed form
You’ll need to return your signed form to the bank. They usually provide a freepost address, and will let you know when they’ve received it.
4. Receive your welcome pack
You’ll receive a welcome pack, which usually includes your first debit or credit card, by post.
What do I need to open a business bank account?
With most online bank accounts you’ll need to show the provider a variety of documents, which might include:
ID for all named company directors
Proof of address
Full business address
Estimated annual turnover
If you’re a limited company, you’ll also need to provide your Companies House registration number.
How easy is it to switch online business bank accounts?
It becomes more difficult to make the switch the bigger your business becomes, but banks will try to make the experience as straightforward as possible. Just remember to speak to them first: they may make an effort to improve your deal to keep you as a customer.
It’s always sensible to keep up to date with the best deals to see if there’s a better fit for you out there – particularly if you’re growing rapidly. After all, your business needs are likely to have evolved significantly from when you first opened your account.
Do banks offer overdrafts on business bank accounts?
Just as with a personal bank account, business banks might offer an overdraft in case you overspend one month. The size of this overdraft varies from provider to provider, and so will the interest they’ll charge on it.
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