A negative banking history such as bounced checks and forced closures of accounts will result in a bad ChexSystems report, creating difficulties opening a business checking account. With second chance business checking accounts, there are fewer requirements and many allow you to apply for an account online. We reviewed the top options based on their features, fees, and overall quality.
Novo allows easy integration with third-party accounting software, including Quickbooks and Xero. You can also link your Novo debit card to your Google Pay or Apple Pay Wallet. Novo also syncs with your Stripe processing account and easily integrates with Slack to get automated updates on your bank account.
If you are looking for a business checking account that is easy to use and with almost no fees, you might want to consider Novo. The bank account is also accessible in the app store for both iOS and Android devices.
NorthOne helps you manage your finances with its invoicing app, budgeting tool by creating an unlimited number of sub-accounts with the envelope functionality, and integrating with a suite of business tools and software.
Lili’s business checking account was built for freelancers, sole proprietors, and single member LLC with or without a DBA. The account comes with features that help users keep their banking costs low, optimize their taxes, and manage their business’s finances.
Relay offers a simple two-tier pricing plan. You can get started with no monthly fees and no account minimums. When you upgrade to the Pro plan, you’ll benefit from additional features such as free domestic and international wire transfers, or the ability to auto-import bills from QuickBooks and Xero.
The majority of financial institutions use the ChexSystems report to understand your banking history and determine how you’re likely to manage your money. A negative report could hurt your chances of opening a business bank account.
A second chance business checking account provides an alternative route for small businesses. This is where banks and financial institutions bypass the ChexSystems report and use more flexible criteria to open your business bank account.
The number of financial institutions that offer this account is limited, but there are several options available online.
Using a second chance business checking account can help you rebuild your ChexSystems score and later apply for a traditional business account elsewhere.
Business owners with a low ChexSystems score will benefit from a second chance business checking account. These accounts will offer various features such as debit cards and direct deposits, although accounts can have restrictions.
There are many pros and cons of opening a second chance business checking account. Here are a few for you to consider before applying:
Second chance business checking accounts have higher fees than a normal account to mitigate the risk of a customer’s poor banking history. Here are a few fees for you to consider when looking into an account for your business:
Fees vary between financial institutions and can quickly add up. It’s a good idea to review the terms and conditions before you sign up for an account, so you are aware of all the possible fees that may be charged.
If you decide that a second chance business checking account is not for you or if you are denied an account, there are alternatives for you to consider.
Bank and credit union managers often have the authority to override negative ChexSystems reports. If you belong to a credit union, it’s worthwhile visiting your local branch to see if there is anything they can do.
Alternatively, you can look into improving your ChexSystems report. First, you’ll need to request your report and identify any errors. If there are mistakes, file a dispute straight away. Any debts, unpaid fees, overdrawn accounts should be paid off. Once you have paid off all your debts, you can ask creditors to update their records.
As your ChexSystems report improves, you can apply for a business checking account without worrying about your previous financial history blocking your application.
When looking for the best second chance business checking account, here are some key factors to consider before you submit an application: