Metro Bank Declined Business Account (What Now?)

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As a budding business, the first order of business is to open a business bank account. It’s possible to do this with almost any bank in the UK. However, like everything else you will be doing for your business, you have to look around and find the best option for your business.

One of the options you’ll come across is Metro Bank, which is known to open business accounts for small and large businesses, community groups and international businesses. Metro Bank is one of the newer banks in the UK. It was established in 2010 and is the first new high-street bank in over 100 years.

Benefits of Opening a Metro Business Account

Metro Business accounts are highly sought-after because they are easy to open. You can set up the account and a debit card on the same day if you open the business account in a Metro Store. This is a huge upside from the days and weeks it can take other banks as they do background checks.

Another huge advantage to having a Metro business account is that branches are open seven days a week. You never have to worry about running your finances on a weekend or on a Sunday. When you need to make transactions, you can rest assured the bank is always open.

Metro Bank also offers various borrowing options for businesses, including overdrafts, credit cards and loans, which businesses can use to fuel their growth and meet their expenses.

The bank also offers accounting options for tech-forward businesses, including integrating existing software, organising receipts and creating invoices. This can help businesses cut back on administrative work and focus on the growth of the business.

These advantages show why many businesses would be interested in opening a business account with Metro Bank.

Why Metro Bank Declines Business Accounts

As quickly as you can get your business account approved at Metro Bank, you can just as quickly have the account denied. Like other leading banks in the UK, Metro Bank has to fulfil a long list of due diligence before opening a business account and, in the process, can decline to open the account for various reasons, including;

Holding a foreign passport

Domestic banks often see foreign ownership or directorship of any business as a red flag. In their view, a holder of a foreign citizenship is high-risk and should be avoided. If you or one of the directors of your business is a foreign national, there’s a high chance that your business account will be declined.

Banks will not highlight this as the reason, but this is the simplest and digressional measure that locks out thousands of wealth-creating entrepreneurs from local markets.

Having a complex business structure

High-street banks are notorious for sticking to the status quo. Small businesses, on the other hand, don’t always operate in linear terms.

Businesses with a complex structure can have multiple Ultimate Beneficiary owners, investors, shareholders or strategic partners. Many companies often have a complex structure by design, with true ownership often hidden behind layers of corporate officers, holding companies and regional directors.

However, a small or new business with the same structure is often viewed as a red flag, which might get your business account declined.

Operating internationally

Metro Bank might also decline your business account if your business is cross-border or any other business activity that can set compliance alarm bells ringing.

With financial crimes at an all-time high, banks are extremely sensitive to being risk-averse regarding international payments. Unfortunately, this approach seems counter-intuitive with technology, considering it is now easier than ever for businesses to operate internationally.

Businesses that have to make high-value international payments understand how frustrating the restrictions of traditional banking can be.

Interacting with high-risk countries

It’s not enough that operating internationally can lead to your account being declined. Also, associating yourself with certain countries considered high-risk is a sure way to have your business account declined.

Alternatives to a Metro Business Account

The stringent rules for opening business accounts among high-street banks have forced businesses to seek more innovative financial solutions that ensure equity and access to crucial financial services.

This has led to the rise of challenger banks offering various types of business accounts and other benefits, such as affordable money transfer services and various types of lines of credit. Some of the leading challenger banks you can consider that offer business accounts include;

Pay iO  

Pay iO is one of the best fintech as far as business accounts are concerned. The online bank not only provides businesses with an effective solution to their banking woes but offers additional advantages like unlimited online access through the web or app so you always have access to your business account no matter where you are.

The account is suitable for small and large businesses, with features supporting either type of business. With a digital wallet, dedicated bank details and even a business card, you can free your business from all the hurdles created by high-street banks and operate your business more freely.

Businesses operating internationally can also benefit from the ability of the account to hold money in different currencies, making it easier for the business to trade across borders and make global payments.

Revolut Business

Another alternative to consider if Metro Bank has declined your business account is Revolut Business. Revolut has made a name for itself as a leader in international payments, making it perfect for businesses looking to make regular international transfers.

Revolut Business also allows the business to hold money in different currencies, offers round-the-clock support, has business API integrations available and is considered among the most valuable fintechs in the UK. However, Revolut has yet to receive a full banking license, but as it stands, it is just a matter of time.

Closing Remarks

For most businesses, having their business account declined can seem like the end of the line. Although many entrepreneurs have developed a thick skin from getting many Nos in the past, banks don’t give a clear reason for declining the account, which can be frustrating. But challenger banks like Pay iO offer an excellent solution that allows you to continue running your business with even more flexibility and technology.

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