Gone are the days when you would have to book an appointment at your local bank branch, provide a stack of paperwork and wait for weeks for your business bank account to be approved.
Most banks now let you apply for a business account entirely online. You might even have your account up and running in a matter of minutes.
How long it takes to open a business account
In October 2024, Finder contacted the following banking brands to ask how long it would take to open an account. Below we have listed the responses and detailed the fastest and quickest way to open a business account.
NatWest told us that it usually takes up to 10 working days, though it can take longer if more than 2 people are listed as officials, or if you accept cash payments, undertake overseas transactions, or if you are a club, society, charity, or non-personal trust.
Monzo Business aims to provide all the benefits of a high street bank but streamlined for a digital age, allowing you to apply online in minutes and do the majority of stuff through the app. 93% of customers are able to open an account the same day they apply. There are 2 types of Monzo Business account: Lite and Pro. Lite is free, while Pro sets you back a monthly fee. If you go for the upgrade, you’ll be able to connect accounting tools like Xero, FreeAgent and Quickbooks. Other Pro perks include multi-user access, automated tax pots, virtual cards, invoicing and more. If you run into any problems, customer support is available 24/7.
Pros
Fee-free spending abroad.
Custom payment links.
Pots to separate money.
FSCS protected.
Cons
No branches.
Charge to deposit cash.
Accounting software only available with Pro account.
Sign up today and unlock 1 month of a paid plan without subscription fees.
Revolut isn’t a bank, but it does offer a business banking account which is fast and easy to open. One downside of not being a “proper” bank is that your funds aren’t protected by the Financial Services Compensation Scheme (FSCS) - although funds at Revolut are still safeguarded. But one of the perks is that it’s faster - accounts are usually up and running within hours, not days. Revolut Business supports more than 25 currencies and can be used in more than 100 countries. You can get physical or virtual cards for you and your team, set up automated payments, and add spending caps, all within the app. Plus, you can integrate your Revolut Business account with software like Xero to keep things running smoothly.
Pros
Flexible account options
Mobile app with lots of good features
Ability to issue cards to all employees
Easy to apply
Freeze card if lost or stolen
Safe and secure
Free purchases
Cons
Basic account does not include many free transactions
Get £150 cashback when you open a Tide business bank account using the code 150BOOST.
Tide is a fintech app that offers business accounts to small businesses and freelancers, hoping to relieve some of the financial stress that comes with a growing company. One of the ways it does this is to help new businesses register their limited company and open an account all in one go. Tide also stands out for the number of accountancy software packages it can integrate with, giving you more choices to find one that suits your business needs.
Pros
24/7 customer support
Categorised spending
FCA regulated
Quick set-up
No monthly fees
Easy to manage accounts and track payments within the app
Ability to set up direct debits and standing orders
Earn 10% cashback on your first $1,000 of international transactions with Airwallex (T&Cs apply).
This bank account enables businesses to collect, hold and send money in multiple currencies. There are no monthly fees and accounts can be opened in a matter of minutes. Users will be able to transfer funds in more than 34 currencies into over 130 countries at competitive exchange rates. What’s more, you’ll be able to create virtual employee and expense cards for your business which will enable you to track spending and set spend limits. You can also use your multi-currency debit card to pay for expenses online or in person in different currencies with no transaction fees, provided you have the right currencies in your account. Further benefits include the option to connect your currency accounts with platforms like eBay, Shopify and PayPal, and the ability to sync your account with Xero to ensure your Xero transaction records are up to date for your accountant or bookkeeper.
Pros
Send to 120+ countries
Competitive FX rates
No monthly account fees
Collect, hold & send money in several currencies
No transaction fees for card payments
Cons
Not covered by the Financial Services Compensation Scheme
Transfers can only be made to your Airwallex wallet or to a business bank account
No annual or monthly fee when you apply using the Finder link.
The Zempler Business Go account (formerly known as Cashplus) can be opened in a matter of minutes and doesn’t require a credit check, so it’s a great option if you need to open a bank account straight away. It’s a digital-only account with no monthly fee attached, and you can open one of these accounts if you’re a sole trader or the owner of a limited company or partnership.Perks of the Zempler account include cashflow tracking, invoicing tools and integrations with accounting software. There are also options for loans and an overdraft facility if you need to use these.
Pros
Open an account in 5 minutes
"Cashplus iDraft" once eligible
Currency cards for travel
Online services in addition to the mobile app
Cons
Charge to have your bank card issued
Traditional bank still needed for majority of your business finance needs
It takes 3 minutes to open an ANNA Money account. ANNA Money offers 3 types of accounts: pay-as-you-go, business and big business. Pay-as-you-go could be a good option if your business is just starting out and you’re unsure of what features you might need. But it does charge fees for most services which could easily add up. The other 2 account options charge a monthly fee and have a limited number of services included in the package. Overall, you can expect to benefit from multiple debit cards for colleagues, cashback and the option to give your accountant access from all 3 accounts. Keep in mind that ANNA Money is an e-money provider, so your deposits aren’t covered by the Financial Services Compensation Scheme (FSCS) if the company goes bust.
Pros
24/7 support
Fast set-up
Invoice and expense services within the app
Ability to connect other provider accounts to the ANNA app through Open banking
Cons
No credit or overdrafts available
Still require a traditional bank account for majority of your business financial needs
It only takes a few minutes to open a Countingup account. Designed for sole traders and small businesses, Countingup offers built-in accounting software and you can share access with your accountant too. It doesn’t charge a maintenance fee for the first 3 months, which could be a good chance to try out the account before you commit. It only has 1 type of business account, which has 3 tiers with different pricing depending on how much you deposit in the account each month. But it’s not a bank so your money isn’t protected by the FSCS if it collapses.
It takes minutes to apply and Mettle aims to review bank account applications in 72 hours. So while it’s not the quickest, it’s still likely to process your application faster than many of the high street banks. Mettle offers free bank accounts for sole traders and small businesses, plus you don’t have to pay to use and integrate the accounting software Freeagent (both Mettle and Freeagent are owned by NatWest). But if your business relies on international payments, needs 24-hour support, or has multiple owners who all want access to the account, you might want to look elsewhere.
It takes around 10 minutes to apply for a Starling account and most are open in less than 24 hours. Starling has 1 business account with different add ons including a Euro business account and a US dollar business account. However, these come with an additional fee. The digital-only bank offers 24-hour support with real people by app, phone or email. It continually scores highly for its customer service, coming second place for business bank accounts according to the latest survey from the Competition and Markets Authority. Plus, you can enjoy fee-free spending abroad, send international payments and pay in cash and cheques by visiting a Post Office branch.
Pros
Add the new Business Toolkit onto your free Starling account and get the first month free of charge (RRP £7pcm)
Completely free UK current account opened and ready to use in 20 minutes
Safe and secure
Fully licensed by the FCA and PRA
Free to use your card abroad including ATM withdrawals, splitting the bill made easy with "settle up" feature, competitive and comprehensible overdraft fees
Decent interest rate paid on current account balances
Efficient app offering a range of good features such as budgeting tools and saving features
Has a marketplace offering competitive pensions
Mortgages and insurance from other growing fintech companies
Teen account options
24/7 customer support (for all types of enquiries)
Cons
Relatively new so does not offer every feature, e.g. mortgages
Wise is an international business account focused on making international money transfers simple. It’s fast and easy to sign up for the account online and, once you’re set up, you can make and receive international payments in no time. By setting up local account details for your business in the chosen currency, these payments happen much faster - as if you’re being paid by a local. Your business debit card can also be used overseas without any foreign transaction fees, and you can get additional cards for your team, with the option to set spending limits and get cash back.
Pros
No monthly fees.
FCA regulated.
Integration with accounting software, including Xero and Quickbooks.
An instant bank account is one that can be opened quickly, though the process is unlikely to be immediate.
While the application form might only take a few minutes to fill in, you then have to wait for the bank to approve your application. How long this process takes depends on the bank and your business.
Many high-street banks might take a week or more to open a business account, but some smaller banks and e-money providers take less than a day.
Can I open a business bank account in one day?
Yes, it is possible to open an account in a day. But it depends on the bank’s processes and what information you need to provide about your business.
If it’s a busy period, like the end of the tax year, it may take longer for a bank to review your application.
It also depends on whether anything is missing from your provided information. If the bank has to get in touch to ask for more details, this could slow things down.
Bear in mind that if your business has a complex ownership structure, that could also increase the time it takes to open an account.
Which type of banks and e-money providers provide these accounts?
Usually, the newer challenger banks make it quick and easy to open a business bank account.
For example, most Starling or Monzo customers have been able to open an account in less than a day. Mettle, a bank owned by NatWest, aims to review applications within a matter of days.
While they are not banks, some e-money providers like Revolut and Tide let you open a business account quickly, too. For example, Revolut reviews most applications in a couple of hours, and so does Tide.
What’s the difference between an e-money account and a bank account?
Banks are allowed to use customers’ deposits to lend and earn interest. They also have to abide by strict requirements to make sure they have enough available cash if a customer suddenly wants to withdraw their money.
However, e-money providers aren’t allowed to lend customers money, so they might segregate deposits into a special account. Compared to banks, the regulations around e-money providers are less restrictive, and their cash reserves don’t have to be as high.
This can have advantages for customers. For example, e-money providers are often more flexible and might be able to process an application quicker than a bank would.
Are business accounts from e-money providers safe?
Unlike deposits held with banks, money held with e-money providers won’t be protected by the Financial Services Compensation Scheme (FSCS).
This means that if the e-money provider goes bust, you won’t automatically be reimbursed under the FSCS. Instead, you might have to wait while the business goes through insolvency, which can be long-winded.
But that’s not to say that e-money providers aren’t safe. They are regulated by the Financial Conduct Authority, which means they have to abide by rules and regulations.
With that said, some e-money providers hold money with other companies that are regulated banks, which means that your deposit would be covered under the FSCS. For example, Tide is a financial technology company, but its deposits are held by ClearBank.
It’s always good to check where your money is being held and what protection you are entitled to if the business runs into trouble.
What documents do I need to set up a business account online?
This varies between banks, but generally speaking, you need to provide this information:
Details about the nature of your business
Proof of your business address
Your registered company number or name (if you’re a limited company)
Your unique tax reference number
Some form of ID, like a passport, driving licence or national ID card
Some banks might ask for information about what the business does and how you intend to use the account.
Depending on your business sector, the bank might ask for details about things like qualifications or registrations.
If your company has shareholders and directors, the bank might want to carry out an identity check on them too.
Bottom line
Speed isn’t everything when it comes to choosing a bank account, so make sure you compare the other features that the banks offer.
While some more established banks can take a week or longer to set you up with a business account, it might be worth the wait if they offer extra support.
But, of course, if you’re in a hurry to open an account, the banks and e-money providers mentioned above might be worth considering. To start comparing, head to our best business bank accounts guide.
Frequently asked questions
It’s very unlikely that you could open a business account instantly. This is because your information and details have to be reviewed before the account can be opened.
But depending on the bank and your business, it still might only take hours or even minutes to set up an account.
It could be that you don’t meet the bank’s requirements. For example, some banks won’t offer accounts for companies that have a high turnover or operate in certain industries.
Or it could be that the bank sees you or your business as too risky. It’s worth asking the bank if it can give you more information about why it has refused you.
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Katherine Denham is a freelance journalist, writer and consumer champion, specialising in personal finance. She has written for The Times since 2019. She also has bylines in The Sunday Times, Times Money Mentor, City A.M. and a number of financial trade publications. When she’s not working she can be found hiking and drawing pictures of her tortoise. See full bio
Katherine's expertise
Katherine has written 6 Finder guides across topics including:
By switching your business bank account, you may be able to reduce your monthly fees or take advantage of different features like smart bookkeeping tools.
Considering a Revolut Business account? We take a closer look at the features and price plans available with these digital-only accounts.
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