If you’re starting a business as a sole trader and your credit history isn’t perfect, you might worry that it will stop you opening a business bank account. The good news is: that’s not usually the case.
Most modern business banking providers don’t carry out full credit checks when you apply for a basic account. This means that a poor personal credit score won’t necessarily prevent you from opening one. Instead, they’ll run identity and fraud checks to verify who you are and ensure your business is eligible.
Some high street banks may still be cautious if you’ve had past financial difficulties, such as County Court Judgments (CCJs) or bankruptcy. But many app-based providers now offer fast account setup with no hard credit search required — and that includes two popular options for sole traders: Tide and Zempler Bank.
Tide: no credit check, easy setup for sole traders
Tide doesn’t carry out a formal credit check when you apply to open an account. Instead, it verifies your identity electronically. This may leave a record on your credit report, but it won’t affect your score and won’t be visible to lenders.
If you’re a UK-based sole trader with a valid form of ID, a UK phone number, and some basic business details (such as your trading name or UTR number), you can usually open an account within minutes. Tide doesn’t ask about your credit score during the application process.
If you later apply for credit through Tide’s partners — such as business loans or a credit line — those products will involve separate credit and affordability checks.
👉 Open a Tide business account
Zempler Bank: no credit check, credit-building tools available
Zempler Bank (formerly Cashplus) also lets sole traders open a business current account without a credit check. Like Tide, it uses electronic identity checks and standard anti-money laundering (AML) procedures.
If you’re registered as self-employed with HMRC and your business isn’t in a restricted industry (such as gambling, adult services or crypto), you should be eligible. A poor credit history typically won’t count against you.
Zempler also offers an optional Business Creditbuilder add-on for users of its paid Business Extra account. This tool helps build your business credit score by reporting regular repayments to credit agencies. However, missed payments could damage your score, so it’s not suitable for everyone.
👉 Open a Zempler business account
Tide vs. Zempler: how do they compare for sole traders with bad credit?
| Feature | Tide | Zempler Bank |
|---|---|---|
| Credit check when opening | No hard check; identity check only | No credit check; identity checks only |
| Impact on credit score | None | None |
| Eligible if you have bad credit | Yes | Yes |
| Access to credit later | Yes – via separate products | Yes – via overdraft or Creditbuilder |
| Credit-building options | Credit Score Insights (monitor only) | Creditbuilder (paid add-on) |
Why your credit score doesn’t matter (at first)
Opening a business bank account is not the same as applying for a credit card or a loan. Basic business accounts don’t involve borrowing, so most providers don’t need to assess your credit history at all.
Instead, they’re looking for:
- Proof of identity
- A UK business address
- Confirmation that your business is legitimate and not in a high-risk sector
So even if you’ve struggled with personal debt in the past, you should still be able to open a business account — and keep your business and personal finances properly separated.
If you apply for credit later
Once your business is up and running, you may want to apply for working capital, an overdraft, or a credit facility. This is the point at which credit checks start to matter.
Both Tide and Zempler assess creditworthiness before offering loans or credit-based add-ons.
Tide provides access to business loans and lines of credit through its partner lenders.
These are subject to standard credit and affordability checks.
Zempler’s Creditbuilder tool doesn’t require a credit check to activate, but your repayments are reported to business credit agencies, which helps you build your score over time.
Summary
- You can open a business bank account as a sole trader even if you have a poor credit history.
- Tide and Zempler do not carry out credit checks when you open a basic account.
- These accounts are suitable for new businesses, freelancers, and individuals who want to keep their business and personal finances separate.
- Credit checks may apply if you later apply for a loan or overdraft.
- Both providers offer tools to help you monitor or improve your business credit profile.