A business account is every business’s lifeline. It facilitates the business’s ability to receive and make payments, keeping it afloat and profitable. It’s no wonder many businesses put a lot of thought into the institutions they want to open their business accounts.
Natwest is one of the leading banks in the UK, offering several business accounts, including the Natwest Start-Up Business account. A quick look at the different benefits that come with a Natwest Business account makes it easy to see why businesses opt to open a Natwest business account. Unfortunately, like other high-street banks, not all business account requests are approved.
Benefits of a Natwest Business Account
A Natwest business account offers face-to-face support at all Natwest branches throughout England and Wales. Customer service in person is highly valuable because businesses can talk to a person who potentially holds the solutions to the challenges they might be facing. You can also access customer support 24/7, which can be accessed in many ways.
Another noteworthy benefit of having a Natwest business account is that it doesn’t charge a monthly fee for its business account, allowing businesses to save on various fees that other banks charge.
Once your business account is approved, you can access the account online via mobile app, Post Office, or over the phone.
Being a fully-fledged bank, the Financial Services Compensation Scheme protects deposits of up to £85,000. The Natwest business account comes with free access to integrated accounting software from FreeAgent, and it’s possible to open the account on the same day.
Why Natwest Declines Business Account Opening Requests
While opening a Natwest Business account seems very lucrative, not all businesses successfully open the account. Natwest, like other high-street banks, often declines business account opening requests, which can leave many new business owners in limbo without a way to receive money from their customers and clients.
Natwest doesn’t state clearly why your business account application has been declined but offers an option to appeal with a high likelihood of still declining your request.
Some of the reasons that might contribute to your business account being declined by Natwest include;
Unfavorable personal credit history
If the person signing for the business account from Natwest has a bad credit history, there’s a high chance that Natwest will not approve the account. People with a bad credit standing are often viewed as high-risk and a liability and most banks, not just Natwest will not approve their business accounts. If possible, consider having another qualified individual with good credit sign up for the account. You will have a higher chance of having the account approved that way.
This is one of the reasons that Natwest admits could cause your business account to be declined and refer you to its credit bureau company, Equifax, to check your credit rating.
Some businesses and industries are poorly understood or deemed to carry too much risk that banks often frown upon them.
If your business has a complicated administrative structure and multiple layers of owners, Natwest might decline to open a business account for you. Complex administrative structures are a huge red flag, particularly for new and small businesses. Adopting a much easier administration is recommended to increase your chances of having the account approved.
The nature of your industry might make it harder to approve your business account. If your business falls under the category deemed high-risk by banks, there’s a high chance your business account will be declined. These high-risk categories include;
- Gambling and betting
- iGaming industry
- Collection services
- Dating services
- Adult services
- Smokes and vaping subscription services
Also, any industry likely to attract a lot of chargebacks is considered high risk and might lower your chances of having your business account approved.
Interacting with high-risk countries
Businesses that trade globally should be aware of sanctioned countries. There is still a select number of countries that, even though they’re not sanctioned, they are still considered high-risk for various reasons. Although there are many reasons why this might be the case, the reasons are usually based on political and economic parameters. If you’re trading with people from these countries, it could be the reason your business account was declined by Natwest.
Alternatives to Natwest Business Accounts
Natwest offers an option for appeal but in, the same breadth insists that their stand to decline opening the account may still stand. Your energies might be better focused on looking for alternative options that will quickly get your business out of the bind it finds itself in.
Digital or challenger banks are a great alternative. For starters, they’re not as rigid as traditional banks and have invested in ensuring their teams understand the more unconventional businesses and can offer them better support.
Some of the challenger banks you can look into when looking to open a business account include;
Pay iO is one of the best-equipped challenger banks for business accounts. It’s one of the few that puts businesses at the core of their operation. While others are mainly money-sending options with a business option, Pay iO is primarily business-oriented, with powerful tools to help guide businesses to their new financial age.
These features include a mobile app and web access so business administrators have full access to their finances at all times. Small businesses can benefit from features like getting bank payments directly from their customers and managing transactions and expenses from one location. International businesses get to send and receive global payments conveniently and can also reduce administrative time and effort using the many tools that Pay iO offers. Additionally, you can get a multi-currency account that can make it easier to pay suppliers in different currencies without incurring currency exchange fees.
Without any alternatives, having your business account declined by banks like Natwest can feel like the end of the world. But it could be the beginning of a beautiful partnership and opportunities you didn’t think possible. The financial industry has grown, and challenger banks like Pay iO are best positioned to help you take advantage of such advancements because they’re not held back by the same laws that high-street banks have to play by. Because these digital banks often work in partnership with some of the banks, you get the best of both worlds.