How to switch business bank account: a small business guide

It might surprise you to know that switching your business bank account is a fairly simple process. There are lots of reasons why switching might benefit your business – from lower fees to better benefits, technology, and tools. And if your bank is closing its local branch, switching to one with a brick and mortar branch close by could be helpful.

Most of the switching process is managed by the Current Account Switching Service. But it’s also important to identify the bank account that best suits your business and prepare your payments and records for the switch.

We look at these steps and more in this guide.

Should I switch business bank accounts?
Choosing a business bank account
Preparing to switch business bank accounts
How to switch business bank accounts
How long does it take to switch business bank accounts?

Should I switch business bank accounts?

There are number of reasons you might want to switch your business bank account:

Changing business needs – some bank accounts are built with smaller businesses in mind. As your company grows, you might find yourself needing to switch
International business – if you start working internationally, you’ll need an account that can handle multiple currencies and international payments
Fees – you may have initially opened your account with a fee-free offer period, or could be finding that the fees you’ve been paying are hitting your bottom line. It might benefit you to switch to another account with lower fees, or none at all
Benefits – some business accounts offer useful benefits such as debit card cashback, or you might want to switch to take advantage of better interest rates. You can even get a cash bonus when you switch
Tech and tools – certain banking apps are easier to use and come with more useful features, such as the ability to pay in cheques as well as built-in tools for jobs like invoicing
Branch closures – Banks and building societies have closed 6,228 branches since 2015, with big brands such as Lloyds, Halifax, and Barclays planning more closures for 2025. If you prefer to do your banking in person, you might choose to switch to a bank with a nearby branch

If you think switching bank accounts might benefit your business for any reason, read on to find out how to find the best bank account for you and how to prepare for and manage the switching process.

Choosing a business bank account

With so many options to choose from, finding the right bank account for your business can feel overwhelming. We’ve identified a few key categories you should consider:

Overall service quality
Online and mobile banking services
Small business overdraft and loan services
Relationship and account management
Service in branches and business centres

This helps you identify what’s most important to your business and choose an account that’s ranked best in this area.

Check out our full article to compare business bank accounts.

Preparing to switch business bank accounts

Once you’ve decided which business bank account will likely suit your business, there are a few final checks you need to make.

Check the fees – many business bank accounts have a monthly fee, and you’ll want to see if the benefits of the account for your business offset the fees. You’ll also want to find out much you might have to pay to send and receive money – such as via debit and credit cards, BACS, CHAPS, and cheque
Check any small print – while many bank accounts are marketed well, you’ll want to look beyond the headlines to find out if they’ll really suit your business and if you meet any eligibility requirements. You might need to make a minimum number of deposits or direct debits a month
Agree an overdraft limit – make sure you’re allowed an overdraft limit that covers any amount withdrawn on your existing account and your regular business needs

If you hold your business bank account with a partner, they’ll also have to agree to move to a new bank.

How to switch business bank accounts

Switching bank accounts is relatively simple – either contact your new bank or apply for an account online. They will then use the Current Account Switching Service to safely move your banking to a new bank or building society. This will help you move your money, standing orders, Direct Debits, and even future payments to a new account.

To prepare for the switch, it’s a good idea to:

let your bank know if you want a copy of your account history, as your transactions won’t be transferred when you move
review standing orders and Direct Debits on your existing account and cancel any that you don’t need

The final step is setting a switch date. This will need to be at least seven days after your application and can’t be on a weekend or bank holiday. You’ll also want to consider how long it will take for the bank to send you and activate new debit or credit cards and whether you’ll be making or receiving any payments during this time.

If there are any problems with your switch date, your bank will contact you. If anything goes wrong with the switch, you’ll be covered for any losses.

Can I switch business bank accounts if I have a loan?

If you have a small business loan, many banks will let you use another provider to look after your your business banking while continuing to manage your loan. You might have to open something called a fee-free Loan Servicing Account with your old bank while you pay off the loan.

How long does it take to switch business bank accounts?

While it only takes seven days to switch once your application has gone through, some banks can take around a week to decide whether to accept you. Some will accept you instantly online.

More business banking guides

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