Opening a business bank account is one of the first practical steps you take after deciding to become self-employed.
The process is usually straightforward, but the timeline can vary significantly depending on the type of bank you choose and how prepared you are when you apply.
In some cases, you can have an active account number and sort code within hours to a day. In others, it can take several weeks.
The short answer
- Digital or app-based providers: often take minutes to 24 hours
- High-street banks: typically take 5 to 15 working days
- More complex cases: several weeks
The main difference among providers comes down to personal ID checks, how the bank verifies your business identity, and whether they require a manual review.
Why do processing time vary so much?
Banks have to conduct anti-money laundering (AML) and know-your-customer (KYC) checks. This means they need to verify you (a sole trader) as an individual, rather than your business, because it’s not a separate legal entity (like a company).
This process is often automated, but not always. Some banks still review applications manually.
Here are some factors which will affect the timescales:
- Whether you apply online or in a branch.
- The type of bank you choose.
- How smoothly can any ID checks be processed?
- The nature of your business activity.
- Any previous credit or fraud markers linked to your name.
Digital business accounts are usually the fastest
Most sole traders choose an app-based business account, such as Tide, ANNA or Zempler.
These providers are designed specifically for sole traders and small companies. They typically offer the fastest onboarding.
In straightforward cases, you may receive your account number and sort code within minutes of applying.
Typical timeline for digital banks
- Completing the application form: around 5 to 10 minutes
- Completing identity checks: instant to a few hours
- Your account goes live: same day or within 24 hours
To complete the ID verification process, you will usually need a current photo ID (passport or driver’s licence). Then you will need to provide a selfie or a short video to verify your identity. You will also need to describe the nature of your business.
You do not normally need to provide any invoices or proof of income.
Some leading digital banks include Tide, ANNA Money, and Zempler.
High-street banks usually take longer
Traditional banks tend to take longer, particularly when they require in-branch identity checks or manual compliance reviews.
Typical timescale
- Completing the application form: 20-40 minutes.
- Verification and manual reviews: 1-3 weeks.
- Account goes live: once all checks are complete.
You’re more likely to experience delays if you have recently changed address, or if your ID doesn’t match the electoral roll or other data.
Can you open an account before you start trading?
Yes. Most banks allow sole traders to open a business bank account before they have started trading, as long as they genuinely intend to do so.
You may be asked when you expect to start trading or receive your first payment, but you are not expected to provide invoices at this stage.
Read more in our guide to opening a business bank account before you start trading.
What slows applications down most often
If your application is delayed, it is often for one of the following reasons:
Identity or address mismatches
For example, if you recently moved house, are using an address that does not match your ID, or you’re not listed on the electoral roll.
Manual compliance checks
Certain industries, international payments, or overseas clients may require additional review by a bank’s compliance team.
Fraud or credit markers
Opening a business bank account is not an application for credit, but banks still screen for CIFAS markers and previous account closures. This does not always lead to rejection, but it can extend processing times.
We explain this in more detail in our guide to opening a business bank account with bad credit.
How to speed the process up
- Use a digital provider for the fastest startup time.
- Make sure your address matches your ID and records.
- Have your photo ID ready before you start the application process.
- Use a clear, simple description of your business activity.
- Avoid applying to multiple banks simultaneously.
What happens once your account is approved
Once approved, most providers issue account details immediately. Debit cards usually arrive within a few days, and online banking access is available straight away.
You typically begin receiving payments once the account details are live.
If you are unsure whether you legally need a separate account, see our guide on whether you need a separate bank account as a sole trader.
