UPDATED July 2023: Most banks have resumed their enterprise checking account operations. Santander is barely permitting functions for brand new enterprise financial institution accounts from present prospects, although that is underneath evaluation.
To see the highest gives proper now, head to What are the perfect enterprise financial institution accounts within the UK?
Authentic article, posted October 2020
Many banks have stopped accepting new functions 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 present prospects’ most urgent wants.
Which banks are nonetheless providing enterprise financial institution accounts?
SmallBusiness.co.uk has spoken to the next banks to search out out the place they stand on accepting enterprise checking account functions.
HSBC
HSBC closed functions for brand new enterprise financial institution accounts on September 30.
An HSBC UK spokesperson stated: “For the reason that introduction of the Bounce Again Mortgage Scheme, we now have given over £12bn of lending to the UK’s companies, as a part of an general £20bn bundle supporting our enterprise and private prospects. As one of many solely banks that remained open to functions from all UK companies because the scheme’s launch, we acquired an enormous degree of demand. With the scheme closing on 30 November, we have to focus our sources on fulfilling present functions. We’re not accepting new functions for Bounce Again Loans from corporations that don’t have an present HSBC enterprise account and we may also cease taking over any new small enterprise banking prospects till 14th December. Functions submitted earlier than thirtieth September 2020 will proceed to be processed.”
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Metro Financial institution
Metro Financial institution had been opening enterprise accounts for brand new to financial institution prospects up till final Friday (October ninth). They’ve now put a short lived pause on opening these accounts.
A Metro Financial institution spokesperson stated: “On account of the numerous surge in demand we’re seeing from companies opening new accounts with us, we’re not in a position to settle for additional new enterprise account functions in retailer or on-line in the intervening time.
“With the federal government lending schemes drawing to an in depth later this 12 months, we have to guarantee we are able to proceed to help our present prospects, the pipeline of latest account functions already in progress and related Bounce Again Mortgage functions which we’re persevering with to fulfil. We anticipate to reopen for brand new functions early within the New 12 months.”
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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’ll see to present prospects with pressing wants. They stated they might open enterprise financial institution accounts once more on the applicable time.
RBS/NatWest
RBS and NatWest aren’t accepting new functions for enterprise accounts in the intervening time.
A NatWest spokesperson commented: “We all know this can be a tough and disturbing 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 functions, we proceed to prioritise our present prospects regarding the authorities schemes.”
Santander
Santander’s web site says: “We’re not at the moment accepting new functions for Enterprise Present Accounts, however we are going to evaluation this place over the approaching weeks and additional particulars can be accessible on our web site.”
TSB
TSB’s web site says: “Sorry, we’re solely accepting Enterprise Present Account functions from present TSB Private Present Account prospects right now. If you happen to 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 deal with supporting our present prospects by this unprecedented time. If you happen to submitted an utility earlier than twenty eighth September we can be in contact. We are going to replace our web site as quickly as we’re in a position to open accounts for brand new prospects.”
Barclays
Barclays are accepting functions, however they too are experiencing elevated demand.
A spokesperson for Barclays stated: “We’re accepting enterprise present account prospects however experiencing as delay on account 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.
Using digital banking platforms elevated all through the 2010s with extra millennials searching for mobile-friendly banking apps. What’s extra, based on a latest Direct Line survey, practically half of younger individuals need to change into entrepreneurs. One in 5 have both began a brand new enterprise since lockdown or plan to begin one by the start of 2021.
With all of this in thoughts, it’ll be fascinating to see whether or not this can 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 may simply examine enterprise financial institution accounts with Nerdwallet now.
Learn extra
12 of the perfect digital banking platforms for small enterprise – Contemplating a digital banking platform over one of many conventional stalwarts? We’ve picked out 12 of the perfect in your perusal
Finest enterprise financial institution accounts for sole merchants – We’ve rounded up a number of the finest enterprise financial institution accounts created with sole merchants in thoughts
Opening a enterprise checking account – how-to and finest accounts – On this piece, we’ll take a look at methods to go about opening a enterprise account within the UK and what providers are on the market
