How to switch your business bank account in the UK

There was a time when choosing your business bank was as simple as walking onto your high street and having a conversation with your local branch manager. Switching banks meant lots of form-filling, administrative work, and time spent.

Today, the options are wider than ever and branch managers (and branches) have become a rarity. Switching, thankfully, has become a lot easier.

Business banking is a very different proposition than it was 10 or 20 years ago – for better and for worse, depending on what you’re looking for. What’s certain, though, is that your choice of bank can hold you back or push you forward. The right bank will help you grow in all sorts of ways. When you find them, you want to get on board as quickly as you can.

This article will explain exactly how to make it happen. With a quick switch, your banking experience could go from painful to productive.

Why businesses switch bank accounts

Banking has become a begrudging cost for most businesses. We all have to store our money somewhere, but often have nothing to show for it. The big banks charge you for deposits, transfers, and – it feels like – breathing.

Businesses are struggling with:

• High fees for everyday usage

• Lack of regular, repeatable human support

• Slow, disjointed, or otherwise poor customer service

• Clunky web apps and a lack of digital native services

• Slow and expensive foreign exchange and multi-currency support

There are enough options out there – from fully licensed banks to eMoney institutions – that there’s no reason to settle any longer. You can find a banking service that gives you everything you need and more.

How to switch your business current account with CASS

2013 was an important year in banking, as the launch of the Current Account Switch Service (CASS) revolutionised consumer choice and freedom.

In brief, CASS automates the switching process for both personal and business current accounts and guarantees completion within seven days. It’s totally free, secure, and has been used for over 11 million accounts to date. The scheme is orchestrated by Pay.UK, a UK not-for-profit company that helps make payments secure, safe and simple.

Over 50 banks in the UK are members of CASS, meaning the vast majority of current accounts are eligible to use the scheme.

The Current Account Switch Guarantee

CASS offers a guarantee to every account holder who uses the service. Your new bank is responsible for meeting this guarantee.

• Your switch will complete within seven working days and on your agreed switch date.

• All of your Direct Debits, standing orders, and payee details will be transferred to your new account.

• Any transfers sent to your old account will be forwarded to the new one automatically.

• If there are any issues with your switch, you will be refunded for any charges or interest you incur.

Who can use the Current Account Switch Service

For businesses, there are some eligibility criteria to know about.

1. You must have fewer than 50 employees.

2. Your annual turnover must be below £6.5 million.

3. Your current bank and future bank both have to be part of CASS.

If you tick all of those boxes, your business can use CASS.

How to use the Current Account Switch Service

Provided you meet all of the eligibility criteria, it’ll take just three steps to switch your account.

1. Apply to open a new account, providing all the standard information required.

2. Find the section of the application in which you can request to use the Current Account Switch Service. Complete this section as instructed.

3. Decide your switch date, submit your application, and put the kettle on. Job done!

Discover our complete Business Account.

How to switch your business account without CASS

There are lots of providers who aren’t part of CASS – some are banks and many are eMoney institutions (like Airwallex). These companies can provide you with business accounts that act a lot like current accounts, but lack some features and treat your money differently. Banks can lend your current account deposits to other customers, but eMoney institutions have to place them in safeguarding accounts at other banks. Most cannot offer loans or specialised financial products.

If you can’t use CASS, you can still switch accounts – it just requires a little bit more work. Your new provider might have an internal process to smooth out the manual switching process, but you’ll need to discuss with them.

Let’s go through the standard procedure below.

1) Apply for a new business account 

Find the account you want, make sure you’re eligible for it, and start your application. You’ll need to provide them with some basic information and documentation, including:

• The name of your business

• Your trading address

• Your Companies House registration number

• An HMRC certificate

• Proof of identity for director(s) (e.g. scan of a passport)

• For limited companies, a copy of your certificate of incorporation, memorandum, and articles of association

• For sole traders, your proof of address (e.g. a bill or bank statement)

Some accounts are open within minutes, others can take a working week or a little longer.

2) Accounts receivable housekeeping

If you collect payments via invoice, you’ll need to let your customers know about your new account details. In most cases, your customers will need several reminders, so it’s worth reminding them in advance and when you deliver your next invoice.

If you take card or bank payments via a gateway, you’ll need to update the details on record with your gateway and merchant account provider(s). This should be easy to do in your account settings but, if in doubt, submit a support ticket for help. You don’t want to get this wrong, if you can avoid it.

3) Accounts payable housekeeping

Getting paid is a lot more fun than paying bills, but both have to happen if you want your business to keep going. So, the next step is to review your accounts payable.

Audit your outgoing payments before you switch, so you know all of the new direct debits and standing orders to add to your new account. You’ll need to go through closely to make sure you catch every recurring expense.

You can pay for software that analyses your spending and picks out recurring expenditure, if you want to speed up the process.

4) Move funds across to your new account

Moving your balance to your new account is free with some providers, but others may charge a fee. You may also run into transfer limits and need to move your balance in tranches.

If you are moving a large amount of money, you may need to go through more verification and security steps than normal. This might include calling your bank, sending proof of ownership of the new account, and other measures.

5) Cancel your cards

Make sure that any cards associated with your account are cancelled and securely destroyed.

If you have a credit card, you may be able to do a balance transfer to your new provider. You’ll need to inform your new provider about the transfer, letting them know the details of your old credit card and collaborating through the process.

If you can’t do a balance transfer, you will need to keep your old account open and arrange for payments against your balance to be made from your new account.

6) Update your accounting software

If you use accounting software (like Xero or QuickBooks), you’ll need to add your new account details to your bank feed.

Do this as soon as you get your new account details, as it will mean your bookkeeping is kept up to date and there’s less chance of transactions slipping through the net.

7) Close your old account

There’s no obligation to close your old business account when you set up a new one. You can hold multiple bank accounts at any time and many companies choose to do this.

If you do keep your old account open, make sure you’re not paying a monthly fee for it. Otherwise, you’ll start to rack up unnecessary debts.

In order to close your old account you will need to fill out an account closure form, which can be downloaded from your provider’s website. Once you’ve submitted the form, your account will be closed within 5-10 working days.

Once your account is closed, you won’t be able to access your statements. Before the closure is complete, download all the statements you might need in the event of an audit or investigation in the future. This is very much a case of it being better to have it and not need it than vice versa.

Traditional banks vs challengers vs. fintechs

We’ve already mentioned just how much choice businesses have in the market today. As the market has grown, so have the distinctions within it. If you’re going to choose a new bank account, it’s important that you know what you’re signing up for.

First, let’s go through a few definitions.

Now that we understand the different categories, we can look at the pros and cons that come with each. We’ve chosen one provider to represent each category, but of course the numbers and information will vary across the market.

How to choose your business bank account

Running a business is hard work; your business bank account shouldn’t be. Dig into whether your new provider can offer what you really need – now and in the future.

You’ll know your specific your needs, but you should check for solid foundations, including:

• App and website: It’s 2025, digital services are the main way we interact with our banks. Clear UX, reliable uptime, and a full suite of features have become essential.

• Customer service: What does their support SLA look like? Do you have a named contact in the bank? How long do calls take to connect?

• Fees and charges: 20p here, £1 there… fees and charges can add up – especially when you aren’t aware they exist. Work out the monthly cost of an account and see if it works for you.

• Cards: How does your provider handle cards? They come in many forms, from company and employee cards to fuel and virtual cards. Can they offer what you need?

• Working internationally: So many businesses have a global element to them, whether it’s a contractor in another country or major supplier relationships. Being able to pay, hold, and move different currencies is essential if you want to protect your bottom line.

• Security: All regulated financial firms have to meet certain security standards, but you still want to be sure they’re in place and reliable. If using an eMoney account, check their safeguarding policy for customer funds and make sure you’re comfortable with it.

Pitfalls to avoid when switching

If you’re using CASS, a lot of the issues will be mitigated for you. There should be no lost payments, missing details, or blank spots on the calendar. If there are, your new bank will be responsible for correcting them.

Switching manually, however, puts you at risk of a few more issues. Watch out for these, as they can be costly in several ways.

• Missed payments: You can work hard to move every Direct Debit and standing order to your new account, but it’s easy to miss one or two. A missed credit card payment could cost you in interest and a missed bill payment could delay a shipment of products or materials. This is one area that needs your full attention.

• Duplicated payments: Just as it’s easy to miss transferring one payment over, it’s easy to miss cancelling one from your old account. An easy mistake could lead to your old account being overdrawn, which often comes at an extra cost.

• Double the costs: If your old account had a monthly fee, are you really getting value for money by keeping it? The same goes for any fee-incurring activity in your old account – you should put it under the microscope and make sure you’re only paying for services that are worth it.

• Bookkeeping: The transitional period – when some payments leave your old account and some come from your new one – is a bookkeeping nightmare. Automated bank feeds in your accounting software will help, but you need to be diligent in this in-between phase.

• Compliance considerations: If you’re in a regulated industry or under any kind of order to report your financial accounts and holdings, it’s imperative that you update the relevant bodies about the changes to your accounts.

Why switch to Airwallex

When you switch to Airwallex, you get a lot more than a business account. Well, the account itself is worth your attention – you can get local payment details in dozens of countries and currencies, low-cost FX, company and employee card issuing, and loads of other useful features.

You also get access to our spend management, expense management, payments, and embedded finance features. We’re in the business of financial infrastructure, not just business accounts – you can move your entire financial world to Airwallex.

Plus, with integrations with platforms including Xero, QuickBooks, Shopify, Magento and more, your entire financial ecosystem will be in harmony.

FAQs

Let’s wrap this up with a quick look at some of the most common questions business owners have about switching banks.

How long does switching bank accounts take?

Using the Current Account Switch Service (CASS), you choose your switch completion date. One of the promises in the CASS Guarantee is that the process will start and finish within seven working days.

If you’re switching manually, then it’s harder to say. Your new account will be open within one day and a couple of weeks, but the point at which you close your old account (if you even choose to) is up to you.

Do I need to notify HMRC?

No, HMRC doesn’t need to know about your bank account switch.

You do need to keep accurate records of your last five years of financial transactions, though. If you’re going to close an account, make sure you’ve got copies of all your statements from that time before closing it.

Will switching banks affect my business credit score?

Any effect on your business credit score will be minor and not long-lasting. Your new bank may conduct a credit check, but this is part and parcel of existing as a financial entity.

Can I keep two business bank accounts?

Yes – and you can keep even more than that if you like. There’s no law that sets a maximum number of accounts you can open and maintain.

Sources

1. https://www.lloydsbank.com/business/business-accounts.html

2. https://www.lloydsbank.com/business/business-accounts.html

3. https://www.lloydsbank.com/business/international/commercial-foreign-currency-account.html

4. https://www.lloydsbank.com/business/fx-margins.html

5. https://www.starlingbank.com/business-account/

6. https://www.starlingbank.com/business-account/

7. https://www.starlingbank.com/business-account/multi-currency/

8. https://help.starlingbank.com/business/topics/sending-and-receiving-money/how-much-does-it-cost-to-receive-a-euro-payment-into-your-gbp-current-account/