There are numerous reasons to have a business bank account including the ability to accept credit or debit card transactions while also simplifying accounting and tax reporting. Plus, having customers send money to business versus your personal bank account makes you much more legitimate in their eyes.
Thanks to government regulations, setting up a business account is more involved than getting a personal checking account at the local bank or credit union. Plus, many banks require a personal credit score that may be unattainable for many small businesses or side-hustle entrepreneurs.
There are a few financial institutions that are dedicated to making business banking more approachable. Strong online and smartphone tools, dramatically lower fees, and feature-rich access make these banks our top business banking picks.
Open an account today!
NorthOne is a fast-growing company built specifically around business banking solutions for freelancers, entrepreneurs, and small business owners. In addition to dramatically streamlining the application process, NorthOne offers a business checking account with no credit check. Here’s a recap:
- FREE business Mastercard debit card
- FREE access at over 40,000 ATMs nationwide
- FREE online and mobile app
- FREE live chat (not a chatbot), telephone, or email support
- FREE in-app invoice creator
- NO minimum monthly balance requirement
- NO NSF fees
- NO ACH transfer fees
- NO credit check or ChexSystems
Banking Services
NorthOne doesn’t require a minimum account balance and charges a $10 monthly fee that includes unlimited transactions in your account. These include ACH payments, bill pay, debit card usage, mobile deposits, and transfers. The only other fee is $15 for wire transfers.
You can also grant read-only access to employees or your accountant or bookkeeper. This keeps your account safe while also giving access to those who need it.
Integrations
With NorthOne business banking, you can connect your account to an almost unlimited number of third-party apps. NorthOne integrates with business tools including Paypal, Stripe, Square, Etsy, Shopify, Airbnb, Amazon, Venmo, Toast, Uber, Lyft, Quickbooks, FreshBooks, Wave, Expensify, and many more. Through these integrations, you can sync transaction details, collect payments, see and pay invoices, send payroll, pay contractors, and more.
If creating and sending invoices, quotes, and estimates is critical to your business, NorthOne offers a free stand-alone invoice creator that integrates seamlessly with the banking app. We’ve tried it and think it’s an elegant solution.
Application Process
NorthOne targets account approvals within one to two business days. Information required to open an account includes name, address, and social security number or tax identification number. If applicable, NorthOne may ask for a copy of your business license and business formation documents. After you’re approved, you’ll need to make a $50 minimum opening deposit.
The NorthOne no credit check business bank account is one of the most competitive business bank accounts for entrepreneurs and small business owners. Their combination of services and offerings, the fast application process, and customer support create an outsized competitive advantage for both the bank and its customers. Every small business owner understands how critical that is for success.
Lili was custom made for freelancers and independent contractors who are operating as sole proprietors and single member LLCs and we really like their offering. Lili aims to approve most accounts within 2-3 days, but some accounts are approved in 2-3 hours.
Lili offers a checking account and Visa debit card with no initial deposit or minimum balance requirement, no hidden fees, no credit check, and no ChexSystems. Lili makes getting a no credit check business checking account easy! Here’s more of what we like:
- FREE business VISA debit card
- FREE (and very user-friendly) mobile app
- NO minimum balance
- NO NSF charges or fees
- NO credit check or ChexSystems
- Receive direct deposit funds 2 days earlier than many banks
- Mobile check deposit
- Unlimited fee-free transactions
- Takes 3 minutes to apply
Integrated Tools
The Lili smartphone app gives you access to tools to manage your expenses and taxes. You assign a category for each expense by swiping left for “life” or personal expenses and right for “work” or business. You can also add receipts to transactions, download quarterly and annual expense reports, and track spending in real-time. Lili will automatically assign an expense category based on the merchant, but allows you to edit the category as needed.
Buckets
Lili has an optional feature called “buckets” that allows you to set aside money in a savings account. The first of these is called a “Tax Bucket”, where you specify a percentage of your direct deposits you want to be saved for future tax payments. You can easily make adjustments and changes along the way and move the money back and forth from your checking account and tax bucket savings account. That way, you know the money will be there when you need to make tax payments.
The second of these buckets is called the Emergency Savings Bucket. You can automatically transfer at least $1 a day to this savings account to use for any larger purchase or unforeseen expense.
Robust for Most
Lili is best for small business owners who want a no-frills, no cost, no minimum balance bank account. You can run all your business and personal expenses through the account and can easily identify and separate them out for accounting and tax purposes. After your account is set up, you can add a business name or DBA name to the account. And you manage everything from the touch of your smartphone.
But there are some limits, too. Lili doesn’t offer checks and you can’t set up your account with an employer identification number. Depositing cash at Green Dot locations can cost up to $4.95 and mobile check deposits are limited to $6,000 per month.
Lili Pro
Lili recently announced a new set of features called Lili Pro. The cost is $9 per month and includes a no-fee overdraft up to $200 on debit card purchases and a robust and unlimited invoicing capability built into the smartphone app. On top of that, users receive 1.50% APY on savings account balances and a more robust expense tracking capability. The Pro version also offers cashback when you make purchases at over 14,000 merchants. If you’re not sure you want to sign up for Lili Pro, get Lili Standard (no cost) and you can upgrade later.
Application Process
You can set up an account online. If you’re a freelancer, you should receive approval and account access almost instantly. All others (Sole Proprietor, Single-Member LLC, Multi-Member LLC, General Partnership, Limited Liability Partnership, or S Corp) can take a couple of days to get approved. You can fund your account using a mobile check deposit, direct deposit, ACH transfer, or by linking your Venmo, PayPal, or Cash App account.
Lili is open for business. Anyone who is their own boss: a sole proprietor, gigsters (ie. Uber and Lyft drivers), contractors, freelancers, or part-time entrepreneurs – you all qualify! Whether you opt for the fee-free Lili Standard account or the upgraded Lili Pro account, we think you’re going to like the way Lili helps you manage your growing business!
One of the most important steps to taking your business to the next level is the need to set up a business bank account. And if you get the right business account, it can give your growing business all the tools much larger businesses enjoy… without all the big business costs.
Novo understands small business owners and makes it easy to open and manage an account. As an online-only bank, you’ll find Novo strikes the right balance between technology, human touch, and real-world benefits. Here are some of our favorite features for Novo Business Checking:
- NO monthly fees
- NO minimum balance requirement
- NO ATM fees
- NO credit check or ChexSystems
- FREE Mastercard debit card
- FREE mobile app
- FREE transfers, mailed checks, and incoming wires
- FREE invoicing to create, send, and track invoices
- FREE mobile check deposit
Business Banking Made Easy
There are no monthly fees, no minimum balance requirements, no incoming wire fees, and no transaction fees with Novo. Novo even refunds all ATM fees. You’ll never be charged for incoming or outgoing ACH transfers, debit card replacements, paper statements, or stop payments.
If you’d like, Novo will send free paper checks for your use. You can also use the app to have checks mailed out. The gotcha with paper checks is that if you don’t have enough money to cover the check, Novo will charge a fee of $27 for insufficient funds. And if you deposit a check from a customer that doesn’t clear, you’ll get whacked for $27.
Novo doesn’t allow you to deposit cash. Instead, you’ll have to use vendors such as USPS, Walmart, and grocery stores to exchange your cash for a money order. Then you can use the mobile check deposit feature to deposit the money order. Novo may not be the right business account for you if your business deals with a lot of cash.
Business Tools
You can manage your no credit check business bank account from your computer or the Novo smartphone app. This allows you to avoid the hassle of visiting a physical bank. And the Novo Reserves budgeting tool allows you to set aside funds in your checking account for expenses such as payroll or taxes.
We especially like their fully integrated invoicing feature which allows freelancers and contractors to send and manage unlimited invoices. You can make payments by ACH transfer and if you are using the Novo Stripe integration you can accept payments through your Stripe account.
Novo seamlessly integrates with popular business tools such as Stripe, Shopify, Zapier, Quickbooks, and Xero. You can also connect Square, Wave, PayPal, Venmo, Apple Pay and Google Pay.
Discounts
Novo has a program called Novo Perks that gives you perks on wide range of business software and services such as Stripe, Quickbooks, Gusto, Google, Hubspot, Booking.com, and many more. For example, you can get $20,000 in fee-free credit card processing with Stripe.
Application Process
It takes about 10 minutes to sign up for a Novo account. You’ll need personal and business information, which may include a social security number, business tax ID, and business formation documents. They do not check your credit or use ChexSystems.
Novo is growing quickly. Their offering is popular with small business owners. The account approval process is currently taking 1-2 business days and once you’re approved, you can get full access to your account with a simple $50 deposit.
We like Novo. We think you’ll like it, too.
Live Oak Bank is an FDIC-insured bank built to serve small businesses. In addition to being the nation’s top SBA lender, Live Oak offers small business checking accounts built for the self-employed.
Specifically, this account is a good fit for newly formed businesses, solopreneurs, gig-workers, freelancers, and side hustlers. Here are some of our favorite account features:
- NO credit check
- Open an account online in minutes
- Access over 55,000 free in-network ATMs
- No account opening or monthly maintenance fees
- Deposit checks, pay bills, and initiate transfers completely online
- Dedicated customer service and onboarding support
- Available to businesses nationwide
- Minimum deposit to open is $100
Getting the $150 bonus is pretty simple. First, you’ll need to deposit at least $2,000 into your new business checking account within 90 days of opening. And, second, you’ll need to make 20 qualified transactions within 90 days of opening your account.
Is Live Oak for You?
The ideal business for a Live Oak small business checking account has been in business less than 5 years, has 5 employees or less, has annual revenues between $50,000 and $500,000, and does not have the need to deposit cash. Live Oak is especially attractive for businesses using Venmo, Square, PayPal, or Stripe.
Fee Structure
Live Oak has made keeping track of fees simple. There are no monthly fees, no online banking fees or ACH transfer fees, no overdraft fees, no incoming wire fees, and no minimum balance requirements. The only fee is $19 for outgoing wire transfers.
Application Process
Live Oak works hard to approve accounts within 2 business days, which is much shorter than traditional banks. As part of the application process, you’ll need to connect Live Oak with another bank account in order to make the initial $100 deposit. The deposit is only debited if the account is approved.
You’ll need about 15 minutes and some documentation during the online application process. You’ll be asked for information such as your address and social security number to confirm your identity. You’ll need an Employer Identification Number (EIN) and you will need to upload a copy of your company’s Articles of Organization. Live Oak may also ask for a copy of your driver’s license.
You must be a United States citizen or Permanent Resident with a valid Social Security Number. People lawfully admitted to the United States on a temporary basis who have DHS authorization to work are not eligible to open an account.
Dedicated Onboarding
One of the most intriguing features of the Live Oak small business checking account is the dedicated onboarding guide that can help you fully transition to the bank. And by “guide” we don’t mean a chatbot, ebook, or online tutorial… it’s an actual person dedicated to your success with your new account. Live Oak isn’t just self-service, it’s personalized human service.
Live Oak’s small business checking account has the key components of a business checking account without the unnecessary features and fees found at a typical bank. If you need a no- or low-fee business account and don’t need to deposit cash, Live Oak may be the perfect place to bank.
Things to Consider When Choosing a Business Checking Account With No Credit Check
When you sign up for a business checking account with no credit check, it’s crucial to carefully consider your business’s financial needs. Business checking accounts can vary significantly, and there are certain things every checking account must have.
1. Fees
Fees are a critical consideration when choosing a no credit check business checking account. Although banks often market them as “free,” these accounts are typically only free under certain, restrictive conditions.
You should examine the account’s monthly fees and inquire about maintenance fees, which may be as high as $50 per month at some banks. Transaction fees are also common, and they can be a flat fee per payment over your limit.
2. Transaction Limits
Many banks and credit unions impose limits on deposits and withdrawals for business checking accounts. You may be allowed to deposit only a certain amount of cash per month without incurring fees.
Similarly, there may be limits on the number of check payments, electronic transfers, debit card payments, or cash withdrawals allowed per month, and exceeding those limits can result in additional fees.
3. Balance Requirements
Many banks require a minimum balance in business checking accounts, and falling below this threshold can result in additional fees. Some banks offer rewards for higher balances, such as higher transaction limits or interest rates.
4. Interest
Banks differ in whether they offer interest on cash held in a no credit check business checking account, and interest rates are generally low. However, even a modest interest rate can yield additional income for your business, and it’s worth comparing rates across different banks.
5. Physical vs. Digital Banking
Choosing between a physical or digital bank for your business checking account depends on your business’s needs. Digital banks often have lower overheads and can offer better terms, but they may lack physical infrastructure like ATMs.
Physical banks may be more appealing if you require access to physical infrastructure or want to speak with someone in person. It’s also worth considering additional services offered by your bank, such as personal loans, as banks may offer better terms to existing customers. However, keep in mind that smaller local banks or online-only accounts may limit your financial flexibility in the future.
Features Included With a Business Bank Account With No Credit Check
Most if not all of the business checking accounts that we recommend offer the following benefits:
- debit card
- cash deposits
- online banking
- scheduled and recurring payments
- invoices
- customer support
- spending insights
- business expense cards
- account manager/account management tools
Documents That You May Need to Open a No Credit Check Business Bank Account
Each bank has its own set of policies, so it’s important to assess them on a case-by-case basis. Generally, banks are obligated to obtain specific documents to authenticate your business and those associated with it.
If you structure your business as a sole proprietorship, the bank may run a ChexSystems report to evaluate your past handling of checking and savings accounts, which requires you to provide your Social Security Number (SSN). However, if your business is organized as an LLC or Corporation with an Employer Identification Number (EIN), a ChexSystems report may not be required.
Depending on the type of your business, you may need one or more of the following official documents. Here are four different types of business structures and the documents required for each.
Sole Proprietor
If the name of the business is not the same as the legal first and last name of the owner, additional documentation is required. So if the owner’s name is Jane Doe and the business name is Doe’s Bakery, additional documentation is needed. However, if it’s called Jane Doe Bakery, none will be required.
Some of the extra documentation in this category that may be required include:
- Business License
- Certificate of assumed name
- Fictitious name certificate or “doing business as”
- Registration of trade name
Corporation
You will need to provide one of following documents:
- Certificate of Good Standing
- Articles of Incorporation
Limited Liability Company (LLC)
You will need to provide one of the following documents:
- Certificate of Organization
- Articles of Organization
- Certificate of Formation
General Partnership
You will need to provide one of the following documents:
- Business License
- Certificate of Assumed Name
- Partnership Agreement
- Fictitious Name Certificate or Statement
Basic Information
No matter what type of business you have, you will need to provide the following information:
- Personal address
- Mobile phone number
- Date of birth
- Email address
- Social security number
7 Frequently Asked Questions About a No Credit Check Business Checking Account
Will a bank pull my credit score for a business bank account?
Depending on the type of business account you are applying for, providers may conduct a credit search. However, if you apply for any of our recommended business bank accounts with no credit check, no credit search will be required during the application process.
Can my personal credit score be traced to my business account?
When applying for a business bank account, certain banks evaluate both your personal credit history and business credit history. Therefore, a negative personal credit history can potentially hinder your access to financial products for your business.
Will my current bank offer me a no credit check business account?
Business bank accounts without credit checks are not provided by all banks. Before applying for any business account, it’s advisable to check the terms and conditions of the accounts available at your current bank. If there’s any ambiguity, it’s recommended to contact the customer service team to seek clarity.
Who is eligible for a no credit check business checking account?
Anyone who owns a business can be eligible for a no credit check business checking account. However, eligibility criteria may vary from bank to bank, so it’s important to check with the bank for specific requirements.
Can I still get a loan with a no credit check business checking account?
Yes, it’s still possible to get a loan with a no credit check business bank account, but the terms and conditions may be less favorable than those for a traditional business checking account. Additionally, the bank may require additional documentation to verify your business’s financial stability.
Can I be denied a business bank account?
Your business bank account application might be denied for a number of reasons. This may happen if:
- The identification documents you provide are invalid.
- You don’t meet the provider’s eligibility requirements.
- You have been convicted of fraud.
- You’ve been convicted or suspected of money laundering.
What can I do if I have been refused a business account?
If you application for a business bank account has been declined, it’s recommended to inquire with the lender about the reason behind the rejection. In case the refusal is due to incorrect information or documentation, you may be able to apply again if you correct the details.
However, if the rejection is due to your credit history, it might be worthwhile to consider a no credit check business bank account, which doesn’t require a credit search during the application process.
Summary
Opening a business bank account is one of the most important things you can do when starting a company. A business bank account can play a key role in growing your business while protecting it and yourself at the same time. It allows you to keep track of business expenses, simplify tax reporting, and deposit payments under your company name.
