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UPDATED July 2023: Most banks have resumed their enterprise checking account operations. Santander is barely permitting purposes for brand new enterprise financial institution accounts from current prospects, although that is below evaluate.
To see the highest provides proper now, head to What are one of the best enterprise financial institution accounts within the UK?
Unique article, posted October 2020
Many banks have stopped accepting new purposes for enterprise financial institution accounts because the coronavirus pandemic surged within the UK.
That is predominantly all the way down to elevated demand for government-backed emergency loans like Bounce Again Loans and the Coronavirus Enterprise Interruption Loans. Banks are specializing in offering these and tending to their current prospects’ most urgent wants.
Which banks are nonetheless providing enterprise financial institution accounts?
SmallBusiness.co.uk has spoken to the next banks to seek out out the place they stand on accepting enterprise checking account purposes.
HSBC closed purposes for brand new enterprise financial institution accounts on September 30.
An HSBC UK spokesperson stated: “Because the introduction of the Bounce Again Mortgage Scheme, we have now given over £12bn of lending to the UK’s companies, as a part of an total £20bn package deal supporting our enterprise and private prospects. As one of many solely banks that remained open to purposes from all UK companies because the scheme’s launch, we acquired an enormous stage of demand. With the scheme closing on 30 November, we have to focus our assets on fulfilling current purposes. We’re not accepting new purposes for Bounce Again Loans from firms that don’t have an current HSBC enterprise account and we can even cease taking up any new small enterprise banking prospects till 14th December. Purposes submitted earlier than thirtieth September 2020 will proceed to be processed.”
Examine HSBC enterprise banking on NerdWallet
Metro Financial institution have been opening enterprise accounts for brand new to financial institution prospects up till final Friday (October ninth). They’ve now put a brief pause on opening these accounts.
A Metro Financial institution spokesperson stated: “Because of the numerous surge in demand we’re seeing from companies opening new accounts with us, we’re not capable of settle for additional new enterprise account purposes in retailer or on-line in the meanwhile.
“With the federal government lending schemes drawing to a detailed later this 12 months, we have to guarantee we are able to proceed to assist our current prospects, the pipeline of latest account purposes already in progress and related Bounce Again Mortgage purposes which we’re persevering with to fulfil. We anticipate to reopen for brand new purposes early within the New 12 months.”
Examine Metro Financial institution enterprise banking on NerdWallet
Lloyds Banking Group (Lloyds Financial institution, Financial institution of Scotland)
A Lloyds spokesperson advised us that they stopped accepting utility at the beginning of the pandemic. That is in order that they will see to current prospects with pressing wants. They stated they might open enterprise financial institution accounts once more on the applicable time.
RBS and NatWest aren’t accepting new purposes for enterprise accounts in the meanwhile.
A NatWest spokesperson commented: “We all know it is a troublesome and traumatic time for our smallest enterprise prospects, and we’ve been working tirelessly to ship the federal government schemes in a safe and strong means – efficiently supporting 23 per cent of all lending throughout the three schemes. As a result of quantity of those purposes, we proceed to prioritise our current prospects regarding the authorities schemes.”
Santander
Santander’s web site says: “We aren’t at present accepting new purposes for Enterprise Present Accounts, however we are going to evaluate this place over the approaching weeks and additional particulars will probably be out there on our web site.”
TSB
TSB’s web site says: “Sorry, we’re solely accepting Enterprise Present Account purposes from current TSB Private Present Account prospects presently. In case you don’t have already got an account with TSB we gained’t be capable to settle for your utility for a Enterprise Present Account. That is to permit us to give attention to supporting our current prospects via this unprecedented time. In case you submitted an utility earlier than twenty eighth September we will probably be in contact. We are going to replace our web site as quickly as we’re capable of open accounts for brand new prospects.”
Barclays
Barclays are accepting purposes, however they too are experiencing elevated demand.
A spokesperson for Barclays stated: “We’re accepting enterprise present account prospects however experiencing as delay as a consequence of excessive ranges of demand.”
What about digital banking platforms?
Revolut, Tide, Monzo and Starling Financial institution have confirmed that they’re nonetheless providing enterprise accounts.
The usage of digital banking platforms elevated all through the 2010s with extra millennials searching for mobile-friendly banking apps. What’s extra, in response to a latest Direct Line survey, almost half of younger individuals need to turn into entrepreneurs. One in 5 have both began a brand new enterprise since lockdown or plan to start out one by the start of 2021.
With all of this in thoughts, it’ll be fascinating to see whether or not this will probably be a possibility for digital platforms to take a higher share of the market or if enterprise prospects throughout the board will stay loyal to the better-known excessive road banks.
If you wish to see all of your choices simply in a single place, you possibly can simply examine enterprise financial institution accounts with Nerdwallet now.
Learn extra
12 of one of the best digital banking platforms for small enterprise – Contemplating a digital banking platform over one of many conventional stalwarts? We’ve picked out 12 of one of the best in your perusal
Finest enterprise financial institution accounts for sole merchants – We’ve rounded up a number of the greatest enterprise financial institution accounts created with sole merchants in thoughts
Opening a enterprise checking account – how-to and greatest accounts – On this piece, we’ll take a look at how you can go about opening a enterprise account within the UK and what providers are on the market
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