Tide has emerged as a leading digital business banking provider for small businesses in the UK. Its unique, technology-driven approach has seen it grow rapidly since its launch in 2015. Currently, the bank has close to half a million business customers in the UK.
Like other challenger banks, Tide offers an app-based business account that works like a normal bank account for the most part. However, it’s still a financial platform and not a fully-fledged bank.
Benefits of a Tide Business Account
Tide offers four types of business accounts that businesses can consider based on their needs. Each type of business has different premiums and additional features. These include the Tide Free, Tide Plus, Tide Pro and Tide Cashback accounts.
As a Tide Business account holder, you have access to 24/7 customer support, free and paid accounts, access to business loans, and FCA regulations, and the business also enjoys FCA regulation and FSCS protection.
Other benefits associated with Tide business accounts include not having monthly fees available. You can also access your account digitally via an app on Android and iPhones and on the Tide website.
But, some of the E-money accounts on Tide are not protected by the FSCS. It is not possible to deposit cheques into the Tide account, and business partnerships and charities cannot open a Tide account.
Why Tide Declines Business Accounts
Like high-street banks, Tide has an ‘unspoken’ list of requirements for businesses before approving their accounts. Although their approval rate for business accounts is higher than that of high-street banks, it’s not unheard of for Tide business accounts to be declined.
The fintech doesn’t explain why they failed to approve some business accounts, but close scrutiny indicates that these are the possible reasons for Tide’s declining business accounts.
Unfavourable personal credit history
Tide is extremely skittish about individuals with unfavourable personal credit history. It is one of the main reasons your business account on Tide might be declined. For entrepreneurs, a bad credit history comes with the profession and passion. Some have better credit history than others, while others have even filed for bankruptcy before.
You can avoid declining your business account on Tide by choosing people with good credit to sign up for the business account. However, the signer of the account must be a person with at least some percentage of ownership, an officer or someone with a major title if the business is registered as an LLC or corporation.
Active tax liens
Another common reason for Tide’s declining business accounts is if a person or the business has high-risk tax liens. Most processors consider this a high-risk situation and will typically stop the process. Usually, businesses have to resolve the liens before starting a business account application. Also, having debts in collection, Tide might be hesitant about giving you a business account. If multiple people qualify to sign up for the business account, you can increase your chances by opting for those with good credit standing.
Some business industries are considered high-risk, and Tide might decline business accounts for businesses in those industries. Industries such as adult products and services, dietary supplements, pawnshops, multi-level marketing, and credit repair services, among others, are considered high-risk by most financial services. They will likely decline your business account if it falls into any of these categories.
Additionally, businesses with a complicated administrative system or have high processing volumes that don’t match requests might also have challenges getting a business account on Tide.
Alternative to Tide Business Accounts
The bad news is, when Tide declines your business account, there’s no looking back. The good news is that other financial service providers with more lenient terms might approve your business accounts. Some even offer better business account services than Tide, and you might find that your business is better served by them than it would have been with Tide. Some of the options you can look into are;
Pay iO is a fast-emerging financial technology service provider designed specifically for businesses. While most fintechs and digital banks have business as an afterthought and money transfer as their bread and butter, Pay iO has businesses as the core of their business.
As a leading digital finance company, Pay iO offers numerous features businesses can leverage to make transactions and grow once their account is approved. For starters, the app is fully available online through Android and Apple platforms and on the web. It gives business owners unlimited access to the account at any time of the day or night.
Pay iO has dedicated features for small and large businesses. Small businesses can receive payments directly from their customers and manage transactions and expenses in one place, making for easier accounting, while large businesses have additional features such as receiving global payments and access to features and tools that help you to conveniently manage your account and reduce administrative time and effort.
Other handy features you can access on Pay iO include digital wallets, dedicated bank details and business cards and a multi-currency account that holds different currencies. The latter is crucial for businesses that operate in different currencies because it helps them save on currency exchange rates.
Another option you can consider if your Tide Business account has been declined is CashPlus. This fully licensed and regulated UK-based digital bank offers personal and business bank accounts and credit-building services. The service also offers a business credit card that enables direct bank-to-bank faster payments.
The credit-building feature on CashPlus is revolutionary, allowing businesses to improve their credit score over time, which you can’t find elsewhere. The provider has also trimmed the fat on the application down to the bare bones. On average, applying for a business account on CashPlus takes about 4 minutes, and there’s no credit check needed, which saves businesses with cash-strapped directors from the risk of getting turned down. However, you can’t pay in cheques, and there’s a 0.5% fee for depositing cast at the post office. CashPlus fees are also on the higher side, and given the many transactions that businesses conduct, these could quickly ramp up.
Having your business account declined by Tide shouldn’t be the end of everything. There are other competitive and equally capable options that you can use to provide you with the financial support you need to help your business receive and make payments and grow!